Balfour Beatty rejects John Laing's offerStaff writer ▼ | December 5, 2014
Balfour Beatty has considered the non-binding proposal from John Laing Infrastructure Fund Ltd (JLIF) to acquire its entire PPP portfolio for approximately 1 billion pounds and concluded that the proposal falls significantly short of its own view of the value of the portfolio.
No deal The proposal falls significantly short
The directors' valuation of the PPP portfolio stood at 1.05 billion pounds, as at June 28, 2014. However, the group's targeted approach to selling individual assets as each investment matures, combined with the current and expected future strength of the market, leads the board to conclude that the realisable value of the PPP portfolio continues to be substantially in excess of the current directors' valuation.
This has been recently evidenced by the disposal of an investment at a 28% premium to the half-year directors' valuation.
As a result, the board intends to publish an updated Directors' Valuation in January 2015. This valuation will take into account recent contract wins, further investments and disposals in the period since June, and a further review of underlying project valuations.
Separately, it will also seek to provide an indicative value range for the current investments pipeline. In combination, these will set out the Board's view of a market value for the existing PPP portfolio and the pipeline. ■