£1bn offered for Balfour PPP portfolio

Balfour Beatty’s recently reviewed PPP portfolio is the subject of a £1bn cash bid from a rival firm.

John Laing Infrastructure Fund (JLIF), the London-listed infrastructure fund that was spun out of developer John Laing’s PPP portfolio in 2010, has confirmed speculation that it is making a non-binding proposal to the board of Balfour Beatty.

“Following due diligence and in the event agreement is reached to purchase the portfolio, JLIF would seek to finance the acquisition largely via an equity capital raise of ordinary shares,” the fund said, adding that further announcements will be made “when appropriate”.

A statement from Balfour Beatty said the board would review the offer once received from JLIF, adding that it “remains open to value creation opportunities across the group while it concentrates on the restoration of value to its shareholders”.

Balfour published its review of its PPP portfolio in August, revealing a 46% increase in value compared to the previous valuation.

JLIF’s approach could reignite Carillion’s interest in Balfour, after the latter two failed to reach an agreement on potential merger over the summer.