John Laing sells 50% of M40 stake

John Laing has sold, via a transfer of its interest in the M40 Limited Partnership, 50% of the capital of UK Highways M40 (Holdings) to the Secondary Market Investment Fund ("SMIF") for £26.2m in cash. Following the transaction Laing will hold a 50% stake in the M40 project and will retain asset management control.

SMIF was the successful bidder in a competitive tender process for the M40 stake.

UK Highways M40 holds a DBFO contract with the UK Highways Agency to design, build, finance, operate and maintain a 123km section of the M40 motorway between Junction 1a and Junction 15. Construction was completed in January 1999 and the concession to operate and maintain the motorway expires in January 2027.

The net assets of the 50% disposed amount to £19.7m. Laing acquired this asset on 28 June 2004 and has since held it as a current asset for resale. Accordingly Laing has not realised any operating profit from it. However, Laing will record a profit on disposal of £6.4m in the current financial year.

The proceeds will be made available for further investment in Laing's infrastructure businesses.

John Laing chief executive Andy Friend said: "Today's sale is further evidence that there is a growing appetite in the secondary market to acquire assets of this quality and we are delighted to be
welcoming SMIF as our partner in this highly successful project."