1st Jul 2016 14:48
LONDON (Alliance News) - Balfour Beatty PLC on Friday said it has exited in full from the Balfour Beatty Infrastructure Partners LLP business and sold its entire interest in Balfour Beatty Infrastructure Partners LP, the fund the business advises, for USD64.4 million.
Balfour has sold its entire interest in Balfour Beatty Infrastructure Partners LP to investment management firm Wafra Investment Advisory Group Inc.
Balfour Beatty Infrastructure Partners LLP was set up in November 2010 as an independently managed infrastructure management business focusing on secondary opportunities, the company said.
Balfour Beatty said the USD64.4 million is payable upon signing and the disposal includes a proportion of the rights to participate in the carried interest generated by the current fund.
Balfour Beatty added that it also has the right to receive further cash consideration, depending on further fundraising by the investments portfolio after the sale, in addition to the proportion of the carried interest retained by Balfour Beatty.
The proceeds of the transaction will be retained within the Balfour Beatty group, the company said.
"Our exit from Balfour Beatty Infrastructure Partners and sale of the fund interest further simplifies the group and maintains our existing balance sheet strength," said Chief Executive Leo Quinn.
"Exiting the infrastructure fund management market will allow our core infrastructure investments business to focus entirely on its highly successful primary investments portfolio which also offers further downstream opportunities for the Balfour Beatty Group," Quinn added.
Shares in Balfour Beatty were up 1.4% at 218.00 pence on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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