24th Feb 2015 07:37
LONDON (Alliance News) - Balfour Beatty PLC on Tuesday said it has entered into the heads of terms on an agreement with the trustee of its pension fund to re-profile the GBP85 million pension deficit payment the company agreed last year at the time of the sale of its Parsons Brinckerhoff business.
The FTSE 250-listed construction and support services company said under the terms of the agreement with the trustee of the Balfour Beatty Pension Fund, the fund will participate in a Scottish Limited Partnership under which Balfour will transfer PFI assets worth GBP85 million.
The GBP85 million pension deficit payment will be made over an eight-year period, starting with a GBP4 million cash payment in 2016 and increasing annually thereafter, Balfour said.
"We are pleased that the pension fund trustee has worked with us to re-profile the pension payments, in light of the cancelled share buy-back," said Balfour Chief Executive Leo Quinn.
"This gives a clear plan on how the pension deficit will be reduced over time, whilst maintaining balance sheet flexibility as we drive the required organisational change and performance improvement, as set out in the Build to Last programme we announced last week," Quinn added.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Balfour Beatty