(Reuters) - Britain’s Balfour Beatty (BALF.L) said on Friday it has agreed to sell a further 7.5 percent stake in Connect Plus, the operator of London’s M25 orbital motorway for 62 million pounds in cash, a week after it announced the sale of a 12.5 percent stake.
The profit on the sale to fund management company Dalmore Capital is expected to be 32 million pounds with the proceeds to be used to pay down debt, the company said.
Last week Balfour agreed to sell a 12.5 percent stake in Connect to Dalmore for 103 million pounds with a view to reducing its debt.
As a result of that sale Balfour had nudged up its expectations for its pretax profit in 2017 and its year-end net cash position.
However, the company on Friday maintained its year-end net cash position as the proceeds from the latest sale of the 7.5 percent tranche will not be received until 2018.
Balfour said it has an option to sell a further 5 percentage points of its remaining 20 percent stake in Connect to funds managed by Equitix and Dalmore before May 13.
Reporting by Rahul B in Bengaluru; Editing by Greg Mahlich