Balfour Beatty PLC THIRD PARTIAL SALE OF M25 INFRASTRUCTURE ASSET (2869F)
February 19 2018 - 6:01AM
UK Regulatory
TIDMBBY
RNS Number : 2869F
Balfour Beatty PLC
19 February 2018
19 February 2018
BALFOUR BEATTY ANNOUNCES THIRD PARTIAL SALE OF M25
INFRASTRUCTURE ASSET
Further to the announcements on 21 and 29 December 2017, Balfour
Beatty announces the sale of an additional 5 percent stake in
Connect Plus, the company which operates the M25 orbital
motorway.
The sale is for a cash consideration of GBP42 million,
equivalent to the price of the earlier transactions, which is in
excess of the Directors' valuation as at 30 June 2017. The expected
profit on disposal on this transaction is GBP22 million. The
proceeds from this transaction will be used to pay down borrowings
in 2018.
In total, Balfour Beatty has now sold 25 percent of its original
40 percent holding for a total cash consideration of GBP207
million. The Group continues to own a 15 percent stake in Connect
Plus.
The Group has sold the 5 percent stake to funds managed by
Equitix Investment Management Limited (Equitix). Further, Equitix
exercised its option on the previous 7.5% partial sale so that the
total 25 percent sell down is split equally between Equitix and
Dalmore Capital Limited (Dalmore).
For the year ended 31 December 2016, Investments in Joint
Venture & Associates in relation to the Group's 5 percent
interest in Connect Plus was GBP31million(1) and it contributed
profit before tax of GBP3 million to the Group's results.
Leo Quinn, Group Chief Executive, said: "This transaction again
demonstrates the ongoing attractiveness of our infrastructure
assets and is in line with our declared intent to maximise value
for shareholders."
[1] The Investment in Joint Ventures and Associates at 31
December 2016 reflects the net position after financial asset and
swap liability revaluations. These revaluations will be recycled to
the income statement as part of the gain on disposal of the Group's
interest in Connect Plus.
ENDS
Investor and Analyst enquiries:
Angus Barry
Tel. +44 (0)20 7216 6824
angus.barry@balfourbeatty.com
Media enquiries:
Louise McCulloch
Tel. +44 (0)20 7216 6846
louise.mcculloch@balfourbeatty.com
Notes to editors:
-- Balfour Beatty (www.balfourbeatty.com) is a leading
international infrastructure group. With 30,000 employees, we
provide innovative and efficient infrastructure that underpins our
daily lives, supports communities and enables economic growth. We
finance, develop, build and maintain complex infrastructure such as
transportation, power and utility systems, social and commercial
buildings.
-- Our main geographies are the UK and Ireland, US and Far East.
Over the last 100 years we have created iconic buildings and
infrastructure all over the world including the London Olympics'
Aquatic Centre, Hong Kong's first Zero Carbon building, the
National Museum of the Marine Corps in the US and the Channel
Tunnel Rail Link.
-- The shareholders of Connect Plus following the sale of 12.5
percent to funds managed by Dalmore and 12.5 percent to funds
managed by Equitix will be:
o 40% - BBDE Orbital Holdings LLP (comprising Balfour Beatty
Infrastructure Investments Limited (BBIIL) 37.5%, funds managed by
Dalmore 31.25%, funds managed by Equitix 31.25%)
o 40% - EDGE Orbital Holdings Limited
o 10% - EDGE Orbital Holdings 2 Limited
o 10% - Egis Investment Partners S.C.A
This information is provided by RNS
The company news service from the London Stock Exchange
END
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