Anybody trading in these shares? I just bought some @ 204.72

UPDATE 1 – John Laing Fund makes 1 bln stg offer for Balfour assets
01 Dec 2014 - 07:52

(Adds background, Kier Group in talks with Mouchel)

LONDON, Dec 1 (Reuters) – John Laing Infrastructure Fund on Monday offered to buy Balfour Beatty's portfolio of public-private partnership assets, operating in sectors like education and health, for 1 billion pounds ($1.6 billion) in cash.

JLIF said it would fund the deal by issuing shares.

The group is one of Europe's largest listed infrastructure funds which partners with public sector groups across the world to deliver local and national infrastructure projects.

John Laing's swoop for the assets comes after a troubled couple of years for Balfour Beatty, during which it has issued a string of profit warnings and fended off takeover approaches from rival Carillion .

The infrastructure group has appointed turnaround specialist Leo Quinn from defence firm Qinetiq as its new chief executive, tasked with leading a strategic review of the group when he joins on Jan. 1. ...

ThanksGF and Skinny. Without you I'd be in the dark given Moneyman hasn't given a news flag on bby :-(

John Laing fund prepares £1bn bid for Balfour assets
John Laing Infrastructure Fund wants to buy the private public partnership portfolio of struggling construction firm Balfour Beatty.

by Gavin Lumsden on Dec 01, 2014 at 08:34

John Laing Infrastructure Fund (JLIF +
) is making a £1 billion bid for the private public partnership portfolio of struggling construction firm Balfour Beatty.

Following weekend reports the investment arm of John Laing, a rival construction firm, confirmed this morning that subject to due diligence it was making a non-binding proposal to buy the PPP assets in cash.

Balfour Beatty (BALF +
) shares jumped 9p, or 5%, to 192p but after a string of profits warnings have lost about a third of their value this year. After resisting a takeover bid by Carillion in the summer it replaced all its senior management.

JLIF shed 3p to 120.5p.

According to reports the PPP portfolio has previously been valued at £1.1 billion and includes contracts to run student and military accommodation, roads and hospitals. This is a similar mix of assets JLIF already runs. The Guernsey-based investment company was spun off and separately listed on the London Stock Exchange in 2010,

As with previous acquisitions, JLIF said it would finance the purchase by issuing shares to investors.

Launched four years ago, JLIF is managed by David Marshall and Andrew Charlesworth. At 5.2% it is the highest yielding of four social infrastructure investment companies. It has generated a 13.5% total return for shareholders over three years.

No probs kernow.

BRIEF – Balfour Beatty to review John Laing Fund's proposal once received

01 Dec 2014 - 12:02

Dec 1 (Reuters) – Balfour Beatty Plc

Response to jlif announcement
Notes announcement by john laing infrastructure fund ltd ("jlif") that it intends to make a non-binding proposal for balfour beatty's ppp portfolio
Will review proposal once received from jlif. A further announcement will be made in due course, as appropriate
Source text for Eikon: ... Further company coverage: BALF.L

Broker talk on the proposed deal yesterday.......

John Laing Infrastructure Fund has made a £1bn offer for Balfour’s portfolio of public private partnership assets, which operate in education, health and other sectors. JLIF has fallen 2.3% to 120.4p after it said it would issue shares to fund the transaction.

But analysts suggested the offer price was on the low side and could attract rival bidders. Meanwhile Carillion, which was rebuffed in an offer for the whole of Balfour Beatty, could return in February.

Liberum said:

We do not think that this is a very generous offer. Balfours’ own conservative directors value was £1,051m at the interims, although there will have been some changes since then including the closure of the Greater Gabbard OFTO |(£15m of equity), the unwinding of the discount and disposals (we assume gains of £33m in the second half or proceeds of £66m assuming two time book). In our mind, even if all of the assets were sold for this low number, the PPP business would still have a material value, note the £170m of equity expected to be invested over the next two years and the likelihood of investments beyond that.

While the Laing offer looks low, it does highlight the significant value of the business. Balfour Beatty’s market cap is £1.3bn; there is at least £1.0bn of PPP assets, we estimate £0.3bn of residual PPP value, we estimate £490m of value on Support Services and £70m of pro forma average cash (£220m of year end cash). This indicates a negative value of £0.6bn for the rest of the business, which is too low, given that most of Construction is performing satisfactorily and the losses can be discontinued (albeit with significant write-offs in January).

Oriel issued a downbeat note of JLIF on the news:

Whilst at this stage there is a lack of information on the proposal, we do think it is likely that in addition to JLIF there are likely to be a number of parties interested in these PFI assets. A large queue of potential buyers could well form, with the danger being that the ‘winning bidder’ is likely to end-up paying a relatively high price for the assets. A £1bn equity issue would double JLIF’s size from its current market cap of £1bn and some investors are likely to welcome the increased stockmarket liquidity associated with an enlarged JLIF. The market currently seems to have an insatiable appetite for listed infrastructure, with this demonstrated by the mid-teen premia that many of the funds are currently trading on. However, we do think there is likely to be some short-term indigestion if the market has to absorb £1bn of equity from JLIF. We re-iterate our reduce recommendation with a fair value of 113p and we think it likely that the whole listed infrastructure fund sector may see some price weakness in the short-term given the size of this potential equity issuance.

Meanwhile Canaccord Genuity said:

It initially looked unclear as to whether or not this included the US portfolio or just the UK - as this makes a huge difference. The sensitivities are that if it is just UK, we value the UK current assets at £877m plus a value for the UK pipeline of £55m, which makes £932m; so if it is just UK it is a fair price and could be looked at. If it includes the US, which having spoken to Laing’s PR company Finsbury it appears to do, it is a poor price and should be dismissed in our view, as we value the combined UK/US business at £1.3bn in our sum of the parts.

I think we should hold out for more.

"Meanwhile Carillion, which was rebuffed in an offer for the whole of Balfour Beatty, could return in February".

I hold JLIF and BBY (SB), so interesting times.

The Carillion bid rejection was followed by a profit warning from BBY. I imagine that CLLN are breathing a sigh of relief, also not forgetting that CLLN wanted the US part of the business, which has now gone. I think CLLN have moved on.

StockMarketWire.com
Balfour Beatty has rejected the non-binding proposal from John Laing Infrastructure Fund ("JLIF") to acquire its entire PPP portfolio for approximately £1bn.

The Board has concluded that the proposal falls significantly short of its own view of the value of the portfolio.

The directors' valuation of the PPP portfolio stood at £1.05bn, as at 28 June 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, has 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 valuation.

As a result, the Board intends to publish an updated directors' valuation in January. 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.

StockMarketWire.com
Balfour Beatty, the international infrastructure group, has reached financial close and completed the acquisition of the £164m Thanet offshore transmission project (OFTO) in the UK.

Balfour Beatty will invest over £20m of equity. The Thanet OFTO, previously operated by Vattenfall, is the high-voltage electricity transmission system connecting the 300MW Thanet Wind Farm, off the coast of Kent, to the onshore transmission grid, generating enough electricity for around 200,000 homes each year.

The assets include one offshore and one onshore substation and over 50 kilometres of subsea cables.

Balfour Beatty's Services division is responsible for the assets' operations and maintenance under a licence granted by Ofgem with a 20 year revenue stream. To date, Balfour Beatty has achieved financial close on two OFTO projects. In November 2013, Balfour Beatty achieved financial close on the £317 million Greater Gabbard OFTO in Suffolk, which has since delivered average availability close to 100%. The company also remains preferred bidder on the Gwynt y Môr OFTO in North Wales, which is expected to close in Q1 2015.

Contract Win

Balfour Beatty, the international infrastructure company, today announces it has been appointed as the sole contractor to a new UK-wide civil engineering and infrastructure framework for public works. The framework is valued at up to £1.5 billion, runs until February 2019 and individual projects are expected to be valued at up to £40 million.

The national framework is operated by Scape Group - the public sector-owned built environment specialist - and is open to all public sector bodies in the UK. It is the first to provide dedicated support to such a diverse range of projects, with Balfour Beatty providing expertise and resources for civil engineering and infrastructure projects ranging from road repairs, new bridges and coastal defence works to light rail schemes and major road projects.

The framework encourages collaborative working and early contractor involvement so that project design and delivery can be influenced, progressing rapidly to the construction stage, stimulating local jobs and spend and increasing value for the customer.

20 Jan 2015 Balfour Beatty PLC BBY Liberum Capital Buy 207.65 206.10 250.00 250.00 Reiterates

StockMarketWire.com
International infrastructure group Balfour Beatty has warned that it expects to reduce 2014 UK construction profits by a further £70m.

This follows a review of the UK construction business by KPMG.

The reduction comprises:
- £20 million relating to the difference between the reported contract positions, as at August 2014, and KPMG's assessment as at the same date

- £50 million relating to an assessment of contract forecasts and subsequent deterioration in project performance up to the end of December 2014

In addition, as recommended, the board will assess the overall level of contract risk provisions in the UK construction business in light of the operational issues identified and will announce the outcome at the full year results in March.

Group chief executive Leo Quinn said: "The summary report on UK Construction is an important step in drawing a line under a period of uncertainty for our customers, and enabling us to focus fully on delivering value.

"I was never in doubt that there was a great deal of work to be done to restore the Group to strength. Balfour Beatty is a large organisation which had become too complex and too devolved for adequate line of sight and financial control. The key is that these issues can be put right and we now have clear action plans in hand. Significant opportunity exists across the Group to drive reduced costs, improved profits and strong cash generation to the full benefit of our shareholders.

"The updated valuation of the Investments Portfolio, together with its income stream, clearly demonstrates its ongoing ability to deliver significant value. Within Balfour Beatty's business model, it also provides a strategic anchor both with key customers and to the Group's growth prospects, earnings and balance sheet.

"Working changes into the culture of the Group will take time and discipline, but everything I have seen so far reinforces my first impressions about the depth of engineering capability in Balfour Beatty, and the expertise, commitment and passion of our people. Our goal now is to ensure that the value delivered to our customers by what is an exceptional workforce, translates into best-in-class performance and returns."

Hardly impacted the SP, switched over to KLR though. Not so sure about the management here.

StockMarketWire.com
Balfour Beatty, the international infrastructure group, has been appointed preferred bidder for the University of Sussex's East Slope Residences project.

In partnership, alongside the University, Balfour Beatty will design, build, finance and operate the project under a 50 year contract.

Subject to planning approval, the project will replace an existing 600 bed facility on the University's campus with a new living space comprising 2,000 new bedrooms in a range of formats including townhouses and some with ensuite facilities.

It will also incorporate innovative student amenities such as social hubs and new student union facilities. Construction is anticipated to start in 2016, and would be delivered by Balfour Beatty's UK construction services business.

Balfour Beatty's investment business has achieved considerable success in the student accommodation market, developing a portfolio of 15 projects (including those currently at preferred bidder), across the UK, US and Australia.

Balfour Beatty will be reporting its 2014 full-year results on 25 March.

StockMarketWire.com
Balfour Beatty's joint venture with Skanska and MWH Treatment (known as SMB), has signed a five year contract with Thames Water, with an option to extend for a further five years.

The initial £800m contract covers the AMP 6 regulatory period, running from April 2015 to March 2020. As a one third partner in the SMB joint venture, the value to Balfour Beatty is approximately £265m over the initial five years. This follows on from a two year Early Contractor Involvement phase that started in March 2013.

The SMB joint venture is providing water asset solutions as part of Thames Water's 'super-alliance', known as eight2O.

AMP6 involves creating and maintaining the necessary water infrastructure across the Thames Water's network, including pipes, pumping stations and water treatment works, in order to meet commitments to Thames Water's customers and the water regulator, Ofwat.

Balfour Beatty group chief executive Leo Quinn said: "Through our joint venture and by collaborating in the Alliance, we bring our deep expertise to bear on this major investment in water infrastructure. This contract will help to ensure the resilience of the vital water infrastructure in Greater London and the Thames Valley for future generations. Balfour Beatty is committed to support Thames Water in delivering on its commitments to its customers and the regulator."

Liberum Capital Buy 232.00 232.00 250.00 285.00 Reiterates

StockMarketWire.com
Balfour Beatty, the international infrastructure group, has sold an 80% interest in the Thanet offshore transmission project (Thanet OFTO) for £40m. The proceeds are consistent with the most recent directors' valuation.

Thanet OFTO is the high-voltage electricity transmission system connecting the 300MW Thanet Wind Farm, off the coast of Kent, to the onshore transmission grid.

Assets include one offshore and one onshore substation and over 50 kilometres of subsea cables which are operated and maintained by Balfour Beatty's Services division under a 20 year licence granted by the energy regulator Ofgem. The wind farm generates enough electricity for approximately 200,000 homes each year.

The 80% interest in Thanet OFTO is being acquired by funds managed by Equitix, a market leading investor and fund manager of core infrastructure assets. Balfour Beatty has co-invested with Equitix on a number of infrastructure projects, including the Greater Gabbard OFTO project, which achieved financial close in November 2013 and the Gwynt y Môr OFTO project, which is expected to achieve financial close in February 2015.

Group chief executive Leo Quinn said: "This disposal validates the Directors' Valuation of the Investments Portfolio, which was updated last month, and clearly demonstrates the Investment business's ongoing ability to deliver significant value for the Group. The OFTO sector remains a key market, which is why we have retained 20% ownership in Thanet, and we look forward to working with our partner, Equitix, to ensure the long term success of this project."

StockMarketWire.com
Infrastructure group Balfour Beatty's joint venture, Gammon Construction, has won a HK$3.2bn contract to build a major residential development in Hong Kong.

The project in Tsuen Wan, Hong Kong includes constructing seven residential towers, ranging from 12 to 40 stories, as well as retail and recreational facilities.

The total construction floor area is 112,000m2. Upon completion, scheduled for 2018, the development will provide around 900 residential apartments.

The project also involves building a public transport interchange and five footbridges. Chinachem Group developed the project, and the contract is with TW5 Cityside Property Development.

Balfour Beatty group chief executive Leo Quinn said:
"This project reflects the continuous growth in the residential market across Hong Kong. The government has projected that the private housing sector will, on average, produce over 14,500 flats each year in the next five years, representing an increase of about 30% compared to the last five years."