Balfour Beatty is to sell a 12.5% stake in Connect Plus, the company which operates the M25 motorway, for £103M.
Although the sale has to be rubber stamped by Highways England, Balfour Beatty expects it to go through by the end of the year and it says it will use the cash to bring down its borrowing next year.
The sale price of £103M is higher than forecasted, meaning that profit from the sale will be £53M, some £37M higher than predicted at the beginning of the year. Balfour Beatty says it is also lining up to sell another 12.5% stake in Connect Plus by May next year. After the sale announced today, it will continue to hold a 27.5 percent stake in Connect Plus.
Balfour Beatty Group chief executive Leo Quinn said: “This transaction emphasises the ongoing attractiveness of our infrastructure assets and is in line with our declared intent to maximise value for shareholders.”