John Laing update on East West Link project

[ A+ ] /[ A- ]

StockMarketWire.com: John Laing update on East West Link project 15 Apr 2015

John Laing Group says the East West Connect consortium, in which the group has a 30% shareholding, has reached an agreement with the Victorian government in the form of a non-binding heads of agreement providing a satisfactory resolution to the East West Link project.

The agreement enables the Victorian government to acquire the East West Connect project companies for a nominal consideration. The agreement also enables the sponsors of the project companies to cease work on the East West Link project.

John Laing Group expects its investment commitment of £60.7m, which is made up of cash collateral and a letter of credit, to be returned in full. As previously disclosed, John Laing ascribed no value to this project in its portfolio valuation as at 31 December 2014.

John Laing Group says it looks forward to pursuing future projects in the State of Victoria.

At 9:39am: [LON:JLG] John Laing Group Plc share price was +1.75p at 219.75p