Construction firm Carillion has sold stakes in two of its public-private partnership projects – boosting its coffers by £86.9 million.
The Wolverhampton-based company received the cash for 65 per cent of its 50 per cent stake in the Allgeby Connaught project and half of its 40 per cent equity interest in the Cheltenham New Accommodation Project for £86.9m to Innisfree, the infrastructure investment group.
Carillion said it now expects to be net cash positive by the year end.
The combined balance sheet value of the PPP assets was £76.7 million, as at the end of 2008, while the total combined pre-tax profit attributable to these assets was £7.5 million in 2008.
A spokesman for the company said, in a statement: “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.”
The firm added that the disposals were in line with its policy of recycling equity in its investments in PPP projects. The funds raised will be used to reduce net borrowings.