UK engineering solutions provider Costain Group Plc exits its minority stake in three joint ventures to publicly traded water utility Severn Trent Plc
UK-based engineering solutions provider Costain Group Plc sold its minority stake in three Severn Trent Plc joint ventures, UK's second-biggest publicly traded water firm. Costain sold the said holding to raise investment funds and working capital, according to Bloomberg.
With the announced Costain divestment, Severn Trent now has full ownership of the Severn Trent Costain firms that were established in 2012. These firms were set up to provide water and wastewater management services for industrial and commercial water consumers. The said companies will now operate under the name Severn Trent Services, the report detailed.
In a statement, Costain explained that the engineering and construction firm will realize a £ 9.1-million profit in 2013 as a result of the £12-million ($20-million) disposal, the report stated.
Costain is a company that delivers engineering solutions across the infrastructures (highways, airports, and power) and natural resources (water, waste, chemicals, hydrocarbons, and nuclear process) in the UK. The firm also provides consultancy, maintenance, and construction services in the region, according to the Costain website.