Last checked at 16 Dec 2016 07:00
News Release
15 December 2016
BALFOUR BEATTY ANNOUNCES 80% SALE OF ITS INTERESTS IN FIVE STREET LIGHTING PFI PROJECTS
Balfour Beatty plc ("Balfour Beatty"), the international infrastructure group, announces the partial sale of its interests in five Street Lighting PFI projects to funds managed by Equitix.
The sale is for a cash consideration of £33 million which will be retained within Balfour Beatty.
The proceeds from the transaction are in excess of the Directors' valuation. Balfour Beatty may receive further cash consideration when the latest results of a number of the projects are determined.
ENDS
Analyst/investor enquiries:
Angus BarryTel. +44 (0)20 7216 6824Angus.Barry@balfourbeatty.com
Media enquiries:
Louise McCullochTel. +44 (0)207 963 2150
louise.mcculloch@balfourbeatty.com
Notes:
1. Description of the projects that are the subject of the disposal:
The portfolio comprises five Street Lighting PFI projects with local councils in Sunderland, South Tyneside, Coventry, Cambridgeshire and Northamptonshire. The total construction value on the projects was approximately £250 million.
The projects achieved financial close between 2003 and 2011 and are all of 25 years duration. This includes an initial five year construction period where the existing street lighting infrastructure was replaced and upgraded. This work was undertaken by Balfour Beatty who will also maintain the street lights under its 25 year installation and maintenance subcontracts.
2. Summary financial information relating to the projects as included in the Group's accounts for the year ended 31 December 2015:
| Street Lighting PFI projects |
Gross Assets | 252.6 million |
Net Assets | 24.0 million |
Profit Before Tax | 4.2 million |
3. Balfour Beatty (www.balfourbeatty.com) is a leading international infrastructure group. With 34,000 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, Middle East and South East Asia. 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 world's biggest shopping mall in Dubai, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.