Balfour Beatty agrees to sell interests in two UK PPP concessions

Balfour Beatty, the international infrastructure group, announces that it has agreed the sale of a 23.9% interest in the Edinburgh Royal Infirmary PPP concession and of its entire 50% interest in the Aberdeen Waste Water PPP concession, both to funds managed by AMP Capital Investors Limited, the Australian wealth management company, for an aggregate consideration of £24.3 million. The transactions will generate a profit of c. £21 million.

Balfour Beatty will retain a 50% shareholding in the Edinburgh Royal Infirmary PPP concession following the transactions.

The interests to be sold were valued at £21 million in the Directors' valuation of PPP concessions as at 31 December 2009. The aggregate disposal proceeds of £24.3 million equate to a pre shareholder tax discount rate of less than 7% on the Directors' valuation cashflows.

The transactions remain subject only to the right of the Group's co-shareholders in the concessions to exercise pre-emption at the relevant sale price. Completion of the sale of these interests is expected to occur in April 2010.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

"These transactions demonstrate the quality of our PPP assets and fully justify our commitment to developing and maintaining an active PPP investment portfolio. Balfour Beatty's development capability, operating expertise and proven capability in financial structuring allow us to form long-term partnerships with the public sector and to realise superior returns from our equity investments. These transactions represent excellent value for Balfour Beatty shareholders."