Skanska to divest investment in M25 motorway in London
Skanska, a global project development and construction group, has signed a Sale and Purchase Agreement (SPA) with Edge Orbital Holdings, a consortium of investors arranged and advised by Macquarie Capital, for its investment in the M25 motorway in London, UK, for SEK2.9bn ($337m).
The transaction is expected to be recorded by Skanska in the first quarter of next year.
Skanska will be divesting its 40% ownership in Connect Plus, which manages Greater London’s M25 orbital motorway.
Balfour Beatty, Atkins and Egis also hold shares in Connect Plus. The project is carried out under Public Private Partnership (PPP).
Completion of the sale is subject to the consent of Highways England (HE), and the final purchase price could be adjusted as a result of certain conditions. The company anticipates that the divestment will take place by next year.
Upon completion of the transaction, Skanska will be announcing the final amount, as well as confirming the expected closing of the divestment.
Earlier this month, Skanska has secured a contract from the New York State Department of Transportation (NY DOT) for the rehabilitation of sections of an expressway in New York, US.
As per the $63m contract, Skanska will carry out works such as structural steel rehabilitation, including replacement and repainting on Interstate 278 in Brooklyn.
Apart from road projects, Skanska also invests in construction and development of hospitals, schools, power plants and other social infrastructure in partnership with the public sector.