News Releases
Balfour Beatty and J A Jones Inc
20 Sep 2002Balfour Beatty, the international engineering, construction and services group, announces today that it has been in substantive discussions with regard to the potential acquisition of J.A. Jones Inc, a leading US engineering, construction and services group.
The Board believes that the acquisition would create significant strategic and financial benefits. However, in order to finance the acquisition while at the same time maintaining an appropriate capital structure, an equity issue would be necessary. Current equity market conditions have led the Board to conclude that it is not appropriate to raise equity at this time and, accordingly, we have decided not to proceed with this transaction.
As a result of the costs arising from the detailed, extensive and exclusive due diligence associated with this potential acquisition, it is anticipated that an exceptional charge of approximately £9 million will be taken in the 2002 accounts.
Balfour Beatty’s current trading is in line with expectations and the company is confident of delivering further progress in 2002 and beyond. It is anticipated that the record half-year order book of £4.8 billion will shortly be extended significantly by the addition of major new contracts in outsourced services; rail, civil engineering and building contracts under the London Underground PPP; and in other UK infrastructure development.
ENDS
Enquiries to:
Tim Sharp
Tel: +44 (0)20 7216 6884
www.balfourbeatty.com
