- Balfour Beatty has sold an additional 7.5% stake in Connect Plus, the company which operates the M25 orbital motorway following the sale of a 12.5% stake on 21 Dec.

The group has an unconditional right to sell the stake to funds managed by Dalmore Capital Limited (Dalmore).

Funds managed by Equitix Investment Management Limited (Equitix) have the right to acquire this stake in priority to Dalmore for an identical price during the period to 13 Mar.

The sale is 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 Jun.

The expected profit on disposal on this transaction is £32m.

The proceeds will be used to pay down borrowings in 2018.

It said that as a result of the sale of 12.5% of Connect Plus, announced on 21 Dec, and this transaction, the board's expectations for both group profit before tax and year end net cash in 2017 were above those included in the trading update on 12 Dec.

Taking account of both transactions, the expected 2017 infrastructure investments profit on disposal is now £85m.

It said the year-end net cash, which was originally forecast to be in line with prior year, was still expected to be around £103m higher since the proceeds from the sale of the 7.5% tranche would not be received until 2018.

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