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Mon March 08 2021

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Balfour sheds more rail businesses

14 Nov 14 Balfour Beatty has struck a deal to sell parts of its German Rail business to Rhomberg Sersa Rail Group of Austria.

The disposal is part of Balfour Beatty’s plan to get out of the rail business in mainland European.

Rhomberg Sersa is buying Balfour Beatty’s German track and plant business and its entire Austrian rail business.

Although the notional sale price is £6m, the net cash consideration will be approximately zero once the cash transferring with the business is taken into account. Completion is expected in the first quarter of 2015 and is conditional on approval from the competition authorities.

The businesses being sold generated £80m of revenue in 2013 with reported losses before tax, within discontinued operations, of £8m.  Gross assets at 27th June 2014 were £36m.

The disposal will result in a discontinued non-underlying loss on disposal for Balfour Beatty of approximately £25m.

Balfour Beatty has also recently completed the disposal of its German railroad tuning business for £1m, broadly equating to net asset value.

Discussions with potential buyers for the remaining parts of the German and Italian rail businesses are ongoing, the company said.

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