Kier has completed the sale of £ 110 million of her home building business to private equity firm Terra Firma. The sale of Kier Living, confirmed Friday afternoon, paves the way for a planned £ 241m capital increase for the company, which was partly contingent on Kier completing the deal and receiving funds before raising funds from new investors. The company said earlier that the sale was expected to be completed by mid-June after it first announced on April 16 that an agreement had been reached. Kier will receive net proceeds, net of career advisor fees, of £ 100m. It has pledged to spend £ 75m to pay off its £ 699m in debt (as of December 31, 2020), £ 10m to cut three pension deficits by around £ 62m, and to keep £ 15m in cash on its balance sheet. . The completion also means that Kier no longer has to fund the working capital requirement for Kier Living. CEO Andrew Davies has made selling Kier Living a major part of his transformation plan for the company to help reduce its debt and refocus the company on contracting. Last month, after the company’s first reported earnings since June 2018, he told Construction News that Kier was different from what it was two years ago: “We got out of the non-core and losing business, and we’ve reduced the structural number of the group and the cost of completing it all behind that. [reported profit]. We have sold out [Kier] Live, and we’ve reached a settlement with our lenders too. ”Kier will now put her stock increase plan to vote on shareholders on June 16. Kier’s new shares will be issued at 85 pence per share, at a 25 per cent discount to yesterday’s closing price of 113 pence. The total issuance of Kier’s shares will double. From just over 162 million shares to more than 446 million The company expects to receive net proceeds after fees of £ 228.7 million About £ 204 million will be used to pay off debt, and the company will keep about £ 16.9 million on its balance sheet as cash The remainder will be used to pay lenders to change the terms of their loan agreements. Davis said that debt reduction using proceeds from the capital increase and the Kier Living deal, combined with cost-cutting over the past two years that cut annual overheads by about £ 115 million, will see The company will return to a net cash position in the coming years.