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Amey to be sold separately from Ferrovial's services division


Ferrovial has separated out the sale of UK contractor Amey to make its global services division more attractive to buyers. 

Ferrovial bosses hope that ditching Amey from the deal will improve chances of finding a buyer for the division.  

Ferrovial has been seeking to sell its global support services division since December, when Goldman Sachs was appointed to find a buyer, but continuing issues with  Amey are thought to be deterring prospective buyers off.  

The acquisition of Amey in 2003 has come to haunt Ferrovial, with continuing rows over a 25-year £2.7bn private finance initiative contract with Birmingham City Council, for which Amey has not been paid since December 2017.  

Sources told the Financial Times that Amey - which has 19,000 employees in the UK - would be sold separately when the dispute about the contract has been resolved. 

The ongoing row has damaged the contractor heavily, with parent company Ferrovial slashing Amey’s value to just £88M in a bid to sell the company earlier this year. In its  financial update released in May last year, Amey was valued at £748M

Birmingham City Council recently fined the contractor almost £50M for taking a year to repair four damaged bollards. 

Amey has repeatedly sought to buy its way out of the contract, tabling offers ranging from £200M to £300M tabled, but these have been rejected by the council.  

Ferroival has been approached for comment.  

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