Balfour Beatty Sells Gammon Stake to Jardine Matheson for £250m Cash
Balfour Beatty has sold its half of Hong Kong contractor Gammon to partner Jardine Matheson for £250m in cash, payable in three instalments to the end of 2028, as it concentrates on its US and UK markets.
Balfour Beatty (LON: BBY) has sold its 50% stake in Hong Kong contractor Gammon Construction to Jardine Matheson for £250m in cash.
The infrastructure group, which spans construction, support services and infrastructure investments, announced the sale at 7am today, before the market opened. Its shares were slightly higher in early trading.
A delayed quote at 8.16am showed the shares at 889.5p, up 0.96% on yesterday’s close of 881p. The day’s range so far is 876.5p to 891.5p, within a three-month closing range of 840p to 945p.
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The buyer is a wholly-owned subsidiary of Jardine Matheson Holdings, which has been Balfour Beatty’s 50:50 joint venture partner in Gammon since 2004 and now takes full ownership. The sale has completed.
Payment comes in three equal tranches, or instalments, of £83.3m: today, by the 31st of December 2027 and by the 31st of December 2028. Balfour Beatty will hold the first as cash and include it in its year-end capital allocation review, the board’s decision on how to use its cash.
The stake was carried at £86m on the balance sheet at the 30th of June, so £250m is almost three times book value. It is also roughly 6% of the group’s market value of about £4.1bn.
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Gammon contributed £36m of operating profit to Balfour Beatty in 2025 and £11m in the first half of 2026. It will be reported separately as a discontinued operation, meaning a sold business, in the 2026 accounts.
Balfour Beatty shares over the past three months, with today’s intraday level marked (delayed quote, 08:16 London time)
Chief executive Philip Hoare tied the sale to the strategy the group launched in March, called Evolve, Energise and Explore, which focuses on the US and UK. He said:
Balfour Beatty’s investment in Gammon has been highly successful, providing a steady dividend for many years. However, in line with our profitable growth strategy, the Group is focused on the opportunities across our chosen US and UK geographies where we continue to see significant potential.
Philip Hoare, Balfour Beatty Group Chief Executive
What the board does with the cash is still open. The capital allocation outcome should be confirmed with the 2026 full-year results, due on the 10th of March 2027.
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