The disposal is part of Balfour Beatty鈥檚 plan to get out of the rail business in mainland European.
Rhomberg Sersa is buying Balfour Beatty鈥檚 German track and plant business and its entire Austrian rail business.
Although the notional sale price is 拢6m, the net cash consideration will be approximately zero once the cash transferring with the business is taken into account. Completion is expected in the first quarter of 2015 and is conditional on approval from the competition authorities.
The businesses being sold generated 拢80m of revenue in 2013 with reported losses before tax, within discontinued operations, of 拢8m.聽 Gross assets at 27th June 2014 were 拢36m.
The disposal will result in a discontinued non-underlying loss on disposal for Balfour Beatty of approximately 拢25m.
Balfour Beatty has also recently completed the disposal of its German railroad tuning business for 拢1m, broadly equating to net asset value.
Discussions with potential buyers for the remaining parts of the German and Italian rail businesses are ongoing, the company said.
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