Further to the announcement on 21 December 2017, 333体育平台官网 announces the sale of an additional 7.5 percent stake in Connect Plus, the company which operates the M25 orbital motorway.
The Group has an unconditional right to sell the stake to funds managed by Dalmore Capital Limited (Dalmore).听 Funds managed by Equitix Investment Management Limited (Equitix) have the right to acquire this stake in priority to Dalmore for an identical price during the period to 13 March 2018.听
The sale is for a cash consideration of 拢62 million, equivalent to the price of the earlier transaction, which is in excess of the Directors鈥� valuation as at 30 June 2017. 听The expected profit on disposal on this transaction is 拢32 million. 听The proceeds from this transaction will be used to pay down borrowings in 2018.
As a result of the sale of 12.5 percent of Connect Plus, announced on 21 December 2017, and this transaction, the Board鈥檚 expectations for both Group profit before tax and year end net cash in 2017 are above those included in the 333体育平台官网 Trading Update on 12 December 2017.听
Taking account of both transactions, the expected 2017 Infrastructure Investments profit on disposal is now 拢85 million.听 听The year-end net cash, which was originally forecast to be in line with prior year, is still expected to be around 拢103 million higher since the proceeds from the sale of the 7.5 percent tranche will not be received until 2018.
Arrangements with funds managed by Equitix and Dalmore covering the potential disposal of an additional 5 percent interest in Connect Plus remain in place.听 These arrangements lapse on 13 May 2018 and are subject to a number of conditions. 听Therefore there is no certainty that there will be any subsequent transaction.
For the year ended 31 December 2016, Investments in Joint Venture & Associates in relation to the Group鈥檚 7.5 percent interest in Connect Plus was 拢47 million1听and it contributed profit before tax of 拢5 million to the Group鈥檚 results. The Group continues to hold a 20 percent stake in Connect Plus.听 听 听 听
[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鈥檚 interest in Connect Plus.
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ENDS
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Notes to editors:
- 333体育平台官网 () 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, US and Far East. Over the last 100 years we have created iconic buildings and infrastructure all over the world including the London Olympics鈥� Aquatic Centre, Hong Kong鈥檚 first Zero Carbon building, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.
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