Balfour Beatty has today confirmed it is planning a rights issue to fund “a significant and complementary acquisition”.
The UK’s biggest construction group made the announcement to the London Stock Exchange following recent press speculation, but gave no firm details on the planning buyout or how much the rights issue would be worth.
According to some reports, the group could be seeking to raise as much as £350 million.
Balfour Beatty, which revealed it was in “advanced discussions” on the takeover, said in its statement: “If the acquisition proceeds, it is expected that it would be substantially funded by a rights issue.
“However, there can be no certainty that either the acquisition or associated rights issue will proceed. A further announcement will be made as and when appropriate.”
It did add, however, that the acquisition would “materially accelerate the fulfilment of its existing strategy”.
The company recently reported a 14 per cent rise in first-half profits to £108 million.
It boasts a £12.5 billion order book boosted by several major contracts in the US, which accounts for 30 per cent of its revenues.