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BBGI and John Laing Infrastructure comment on Carillion

BBGI and John Laing Infrastructure comment on Carillion – BBGI SICAV says it has no exposure to Carillion. John Laing Infrastructure Fund Limited has 9 operational PPP projects where Carillion are the Facilities Management (“FM”) provider, 4 schools projects, 4 emergency services projects and 1 road project.   The value of these projects is approximately 8.5% of the total portfolio value and approximately 9.6% of the Net Asset Value using 30 June 2017 valuations and acquisitions since then at cost.   The investment adviser’s asset management team have been aware of the issues affecting Carillion and have had contingency plans in place for some time. These have involved discussions with a number of potential replacement providers and the investment adviser is in the process of implementing these contingency plans and seeking to appoint alternative FM providers on all of the 9 projects to replace Carillion.   At this stage the investment adviser expects that this can be achieved with minimal service disruption and minimal additional cost.

John Laing Infrastructure has no projects currently in construction where Carillion are the contractors.   John Laing Infrastructure owns one project where Carillion are still liable for any construction defects found on the project, with the construction period having completed over 10 years ago.  A recently completed routine defects survey has not highlighted any significant areas of concern.

John Laing Infrastructure’s investment adviser believes that the compulsory liquidation of Carillion should have no material impact on the company. It will continue to manage the situation as it develops and provide further updates as appropriate.

BBGI / JLIF : BBGI and John Laing Infrastructure comment on Carillion

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