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ISS has issued an update on its divestment programme and announced the divestments of its Hong Kong based waste handling business unit as well as ISS Taiwan.
The Hong Kong business unit generated approximately 0.2 per cent of Group revenue. With the transactions, accumulated net proceeds of the divestment programme now amounts to DKK 1.8 billion compared to the total target for 2021 and 2022 of around DKK 2.0 billion.
The divestment programme is thereby nearing its completion, and ISS is updating the scope of the programme.
The ongoing execution of the OneISS strategy and the business development of certain assets has led to a reduction of the assets in scope. This relates to ISS Chile and a few selected business units where ownership has been reassessed to be value-adding in IFS bids and contracts. Total net proceeds are still expected to be around DKK 2.0 billion.
ISS Chile has developed positively during 2021 and has won key account contracts making the strategic fit to the global business more relevant and better aligned to the OneISS strategy. ISS Chile will therefore be reclassified back to continuing operations and will from 2021 be reported as part of the Americas region.
The three outstanding countries (Brunei, Portugal and Russia) continue to be reported under discontinued operations until divestment, expectedly in 2022. Furthermore, the number of business units under the divestment programme has also been reduced and now only comprise two smaller business units generating annual revenue of approximately DKK 150 million.
According to ISS, the changes to the divestment programme will positively impact Group revenue from continued operations by approximately DKK 1 billion in 2021.
Group CEO Jacob Aarup-Andersen said: “The continued strong execution of the divestment programme is important for our strategy execution. As we are reaching the conclusion of the programme, we are gradually able to refocus the business from rightsizing our footprint towards our important commercial and sustainability priorities.”
