The deal follows a similar move in November 2010 when six PFI investments, in healthcare and education projects and valued at £22m, were transferred to the pension scheme.
The value placed on the latest two PFI stakes to be transferred is £20.3m
Costain said that it had also instigated ‘a liability risk management exercise’. Pension scheme members are being offered what is described as an ‘enhanced transfer value and pension increase exchange’.
In a statement to the stock exchange this morning, Costain said: “The level of liability reduction will depend on the take-up of the offer by members and financial conditions at the point the entire exercise completes (expected to be May 2012). At this stage, it is estimated that the initiatives could reduce the scheme liabilities by approximately £50m, and could incur a one-off accounting cost, estimated at £6m, to be expensed in 2012.”
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