Carillion has sold a proportion of its equity investments in two Public Private Partnership (PPP) projects, Allenby Connaught and the New Accommodation Project, Cheltenham, to Innisfree for a total cash consideration of £86.9 million.

On 31 December 2008, the combined value of the assets in Carillion's balance sheet that are the subject of the transaction was £76.7 million. The total combined pre-tax profit attributable to these assets was £7.5 million in 2008.

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These disposals are in line with Carillion's policy of recycling equity in its investments in PPP projects and the proceeds will be used to reduce the Group's net borrowing.

The proportions of equity sold are as follows: 50% of Carillion’s 40% interest in the New Accommodation, Cheltenham, project and 65% of Carillion’s 50% interest in the Allenby Connaught project.

(CD/KMcA)