Balfour sells further M25 stake

Contractor Balfour Beatty has sold a further 7.5% stake in the company that operates the M25 PFI project.

Balfour has agreed to sell the additional stake in the Connect Plus consortium to funds managed by Dalmore Capital. However, funds managed by Equitix have the right to acquire this stake in priority to Dalmore for an identical price during the period to 13 March 2018.

The sale is for a cash consideration of £62m. This is equivalent to the price of Balfour's sale of 12.5% of its share in the consortium earlier in December.

The expected profit on disposal on this latest transaction is £32m. The proceeds will be used to pay down borrowings in 2018.

Balfour said the two deals mean that profit from its infrastructure investments division in 2017 are expected to reach £85m.

It added that arrangements with funds managed by Equitix and Dalmore covering the potential disposal of an additional 5% interest in Connect Plus remain in place.