333体育平台官网, the international infrastructure group, today announces that it has reached an agreement with funds managed by Dalmore Capital Limited (Dalmore) to sell a 12.5 percent stake in Connect Plus, the company which operates the M25 orbital motorway.
The sale is for a cash consideration of 拢103 million, which is in excess of the Directors鈥� valuation as at 30th June 2017. The sale, which is subject to Highways England consent, is expected to complete before year end. The proceeds from this transaction will be used to pay down borrowings in 2018.
As a result of this transaction, the Board鈥檚 expectations for both Group profit before tax and year end net cash in 2017 are higher than those included in the 333体育平台官网 Trading Update on 12 December 2017.聽The expected profit on disposal on this transaction at 拢53 million is 拢37 million higher than the market consensus of 拢16 million for Infrastructure Investments profit on disposal in 2017.聽The year end net cash, which was forecast to be in line with prior year, is now expected to be around 拢103 million higher.
In addition, 333体育平台官网 has entered into a series of arrangements with funds managed by Equitix Investment Management Limited and Dalmore under which up to an additional 12.5 percent interest in Connect Plus may be sold by 333体育平台官网 at an equivalent price.聽These arrangements lapse on 13 May 2018 and are subject to a number of conditions. 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 12.5 percent interest in Connect Plus was 拢78 million1聽and it contributed profit before tax of 拢8 million to the Group鈥檚 results.聽The Group continues to hold a 27.5 percent stake in Connect Plus.
Leo Quinn, Group Chief Executive, said:聽鈥淭his transaction emphasises the ongoing attractiveness of our infrastructure assets and is in line with our declared intent to maximise value for shareholders.鈥�
1The 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.聽
ENDS
Investor and Analyst enquiries:
Angus Barry
Tel. +44 (0)20 7216 6824
angus.barry@balfourbeatty.com
Media enquiries:聽
Louise McCulloch
Tel. +44 (0)20 7216 6846
louise.mcculloch@BalfourBeatty.com
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.
- The shareholders of Connect Plus following the sale of 12.5 percent to funds managed by Dalmore will be:
- 40% - BBDE Orbital Holdings LLP (comprising 333体育平台官网 Infrastructure Investments Limited (BBIIL) 68.75% and funds managed by Dalmore Capital Limited 31.25%)
- 40% - EDGE Orbital Holdings Limited
- 10% - EDGE Orbital Holdings 2 Limited
- 10% - Egis Investment Partners S.C.A
