Outsourcing company Amey is reportedly close to an agreement with Birmingham City Council to allow it to get out of its PFI contract to repair the city’s roads.
According to a report in yesterday’s Sunday Times, Amey is prepared to offer the council more than £200m to free itself from the 25-year deal.
The £2.7bn contract had been the subject of a five-year legal tussle, which ended when the Court of Appeal ruled in the council’s favour in the summer, and refused to allow Amey to take the case further to the Supreme Court.
In July 2018 Amey reported a pre-tax loss for 2017 of £189.8m, after it was forced to make a provision for the roads contract.
In December, the Financial Times reported that Ferrovial was in talks with PAI Partners and Greybull Capital over a potential sale of Amey.
The conclusion of a deal over the Birmingham contract would help to secure a deal.
