Balfour Beatty has sold another bit of the M25

 
Caitlin Morrison
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London From The Air
Balfour Beatty has sold another bit of its M25 asset (Source: Getty)

Balfour Beatty has sold another 7.5 per cent stake in Connect Plus, the company which operates the M25 orbital motorway.

Earlier this month, Balfour sold a 12.5 per cent chunk of Connect Plus to Dalmore Capital.

The second stake in the asset was sold for a cash consideration of £62m, equivalent to the price of the earlier transaction, which is in excess of the directors' valuation as at 30 June 2017, Balfour said.

The expected profit on disposal on this transaction is £32m, according to the group, and the proceeds from this transaction will be used to pay down borrowings in 2018.

Balfour said today: "As a result of the sale of 12.5 per cent of Connect Plus, announced on 21 December 2017, and this transaction, the board's expectations for both group profit before tax and year end net cash in 2017 are above those included in the Balfour Beatty trading update on 12 December 2017.

"Taking account of both transactions, the expected 2017 infrastructure investments profit on disposal is now £85m. The year-end net cash, which was originally forecast to be in line with prior year, is still expected to be around £103m higher since the proceeds from the sale of the 7.5 per cent tranche will not be received until 2018."

Shares in Balfour Beatty were down 0.7 per cent in early trading.

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