John Laing Group to sell stake in Poland motorway for €147m

Infrastructure investor John Laing Group is to sell a shareholding in a motorway project in Poland to a subsidiary of a European fund for €146.9m (£131m).

The FTSE 250 company is to sell its 29.69% stake in Gdansk Transport Company, the owner and operator of the A1 motorway project, to FS Amber Holdings, a subsidiary of the European Diversified Infrastructure Fund, which is managed by First State Investments.

The deal, which is subject to conditions, is expected to close by the first quarter of 2017, and the company will use the sum received to invest in greenfield infrastructure projects.

The €146.9m, which about €2.2m can be deferred, may be reduced by the amount of any dividend or other distribution paid by Gdansk Transport Company after Friday, which is retained by John Laing.

The final sum is also subject to certain adjustments which could result in an increase of up to €1.7 m or a reduction of no more than €4.5m.

John Laing’s realisation in 2016 was about £100m, excluding £19.5m from two realisations agreed in February.

For the year to date, the company had realisations of £56m and is currently working on other disposals which are capable of meeting its £100m guidance.

The A1 motorway project has two phases, the first is about 90km from Gdansk to Nowe Marzy in northern Poland, and the second is an extension of about 60km to Torun at the southern end of the motorway

At 31 December 2015, Gdansk Transport Company had gross assets of PLN 7,319m (£1,508m) and net profit of PLN 142m (£29m).