Balfour Beatty announces disposal of parts of German Rail Business

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Balfour Beatty announces disposal of parts of German Rail Business

Balfour Beatty, the international infrastructure group, has reached an agreement to sell parts of its German Rail business to Rhomberg Sersa Rail Group of Austria.

This disposal continues the firm's stated intention to divest all of its mainland European rail businesses, the results of which are reported in the group's discontinued operations.

The transaction comprises the German track and plant and Austrian businesses. The businesses have been sold for gross proceeds of £6 million (US$9.4 million), but 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, inter alia, on competition clearance.

The disposal group generated approximately £80 million (US$125.3 million) of revenue in 2013 with reported losses before tax, within discontinued operations, of £8 million (US$12.5 million). Approximately 600 employees will transfer across with the business.  Gross assets at 27 June 2014 were £36 million(US$56.4 million). The disposal will result in a discontinued non-underlying loss on disposal of approximately £25 million(US$39.1 million).

In addition, Balfour Beatty recently completed the disposal of the German Railroad Tuning Business for £1 million (US$1.56 million), broadly equating to net asset value. Discussions with potential buyers for the remaining parts of the German and Italian rail businesses are ongoing.

List of country news

Country news

  • November 28, 2014

    Bavarian town seeks interest for city hall PPP

    The German town of Bad Neustadt has issued a request for expressions of interest (REOI) for the development of a new city hall trough a public private partnership (PPP) project. Read more
  • December 02, 2014

    BAM selected to build 'House of the Future' PPP project in Berlin

    BAM has won the contract for the public private partnership (PPP) project, House of the Future in Berlin, Germany. Read more
  • December 09, 2014

    DIF Renewable Energy Fund sells a portfolio of 9 German wind farms

    The DIF Renewable Energy Fund has closed the sale and purchase agreement (SPA) with the Allianz Renewable Energy Fund for the sale of 9 operational wind projects in Germany. Read more
  • January 09, 2015

    Macquarie Capital acquires 49.89 pc stake in EnBW's offshore wind farm

    Energie Baden-Württemberg AG (EnBW) has sold 49.89 percent of its shares in the offshore wind farm EnBW Baltic 2 to Macquarie Capital, the principal investment, advisory and capital markets arm of Macquarie Group. Read more
  • February 03, 2015

    EIB considers loan for German PPP road project

    The European Investment Bank (EIB), the European Union's nonprofit long-term lending institution, is considering financing the A6 Wiesloch/Rauenberg-Weinsberg road PPP project in Germany. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.