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| Carillion sells equity in two Public Private Partnership projects British engineering and services firm Carillion plc has sold a proportion of its equity investments in two Public Private Partnership projects, Allenby Connaught and the New Accommodation Project, Cheltenham, to Innisfree for a total cash consideration of £86.9 million. At 31 December 2008, the combined value of the assets in Carillion's balance sheet that are the subject of the transaction was £76.7 million. The total combined pre-tax profit attributable to these assets was £7.5 million in 2008. These disposals are in line with Carillion's policy of recycling equity in its investments in Public Private Partnership projects and the proceeds will be used to reduce the Group's net borrowing. Following the receipt of these proceeds the Group now expects to move to a net cash position by 31 December 2009. The proportions of equity sold are as follows: 50 per cent of Carillion's 40 per cent interest in the New Accommodation, Cheltenham, project and 65 per cent of Carillion's 50 per cent interest in the Allenby Connaught project. The sale proceeds reflect the net present value of the cash flows derived from the £2.6 billion of gross sales revenue that these equity investments would have generated for Carillion over the period of the concession contracts. write your comments about the article :: © 2009 Construction News :: home page |