Balfour Beatty
announced today that it has agreed to sell its 24.5% interest in
Devonport Management(DML) to
Babcock International(Babcock) for approximately £86m in cash. The disposal will lead to profits of approximately £50m in Balfour Beatty’s 2007 accounts.
DML was established in 1987 to run Devonport Royal Dockyard, which it then acquired in 1997. It offers design, build and support solutions across the defence and commercial sectors, including nuclear submarine refit, refuelling and maintenance.
‘Devonport Management has been a very good investment for Balfour Beatty and we are pleased to have played a part in the success of the enterprise,’ said Balfour Beatty Chief Executive, Ian Tyler.
‘However, long-term involvement in DML is not core to our strategy and a sale on the terms agreed represents excellent value for our shareholders. This sale places the combined Babcock and DML businesses in a primary position to achieve consolidation of
The other shareholders in DML, who are also selling their interests to Babcock, are KBR (51%) and the Weir Group (24.5%). The transaction is conditional upon the approval of the Ministry of Defence and the shareholders of Babcock. It is anticipated that the transaction will be completed within approximately 60 days.
Five ways to prepare for your first day
If I may add my own personal Tip No. 6 it goes something like this: From time to time a more senior member of staff will start explaining something...