LONDON -- The shares of Balfour Beatty (LSE: BBY ) have slipped 0.9% to 214 pence as of 9:30 a.m. EDT after the FTSE 250 midcap announced the sale of two Private Finance Initiative investments.
The deals involve Balfour's 50% interest in school PFI projects in Birmingham, Bassetlaw, Stoke and Rotherham, as well as a 50% PFI interest in a Manchester hospital. Balfour said the transactions would raise 58.5 million pounds and had exceeded the company's valuation by 21.9 million pounds.
Balfour's entire PFI portfolio was valued at 734 million pounds by the company at the end of 2012.
Balfour chief executive Andrew McNaughton said today, "The transactions we have completed demonstrate the quality and liquidity of our portfolio and are in line with our strategy to generate income from our Infrastructure Investments business through disposals, thereby releasing cash for future investments and delivering value for our shareholders."
Earlier this week, Balfour admitted that problems within its construction division would lead to a 50 million pound profit shortfall during 2013. Last year, underlying group profit was 310 million pounds, and the dividend was set at 14.1 pence per share.
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