February 19, 2007 / 9:43 AM / 12 years ago

AMEC to sell stake in rail firm

LONDON (Reuters) - Engineering and project management firm AMEC AMEC.L said on Monday it had reached an agreement to sell its 50 percent interest in AMEC SPIE Rail Systems to French infrastructure company Colas SA (COLP.PA).

AMEC, whose rail unit employs around 500 people, did not provide a value for the deal.

At 9:00 a.m., shares in the company were up 1.3 percent at 487 pence, valuing it at 1.6 billion pounds.

London-based AMEC SPIE Rail Systems, which built an extension to London’s light rail in 2005, generated revenues of 156 million pounds in the year to end-December 2005. Net assets were 26.7 million pounds.

After a strategic review, AMEC said in December it planned to sell its Built Environment businesses to focus on high-end engineering and consultancy services in selected energy and industrial markets.

“The disposal of our interest to Colas is consistent with my objective of finding strong purchasers with good prospects for all of the Built Environment businesses,” AMEC’s Chief Executive Samir Brikho said in a statement.

“The successful disposal of these businesses is a key objective for 2007.”

The company will report its full-year results for 2006 on March 14.

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