Carillion improves offer for the company, offer values Balfour at £2.086B
- Carillion announces that it has today put an improved merger proposal to Balfour Beatty. Carillion hopes that, on the basis of these improved terms, the Board of Balfour Beatty will now re-engage in discussions and extend the PUSU deadline.
- Carillion continues to believe in the powerful strategic logic of a merger with Balfour Beatty and that, as a direct result of the merger, the cost-base of the combined group could be reduced by at least £175M per annum by the end of 2016, that earnings would consequently be significantly enhanced from that year and that these cost savings would represent a capitalised value of over £1.5 billion before any re-rating
- Balfour Beatty had previously agreed to a 56.5% share for Balfour Beatty shareholders based on the current undiluted ordinary share capital of each of Balfour Beatty and Carillion, worth £1,886M
- All-share merger of Carillion and Balfour Beatty;
58.268% share for Balfour Beatty shareholders based on the current undiluted ordinary share capital of each of Balfour Beatty and Carillion;
In addition to the interim dividend announced by Balfour Beatty last week and to the 2014 final dividend to which shareholders of the combined group would be entitled, Balfour Beatty shareholders to receive an additional cash dividend or equivalent of 8.5 pence per Balfour Beatty share (£59M in total);