Leighton Holdings (LEI) announced the sale of Thiess Waste Management to Remondis AG & Co KG for a total purchase price of $218 million.
Mr Hamish Tyrwhitt, Leighton Holdings Chief Executive, said, “I am very pleased to be able to announce the successful sale of Thiess Waste Management. Together with the disposal of HWE last year, this sale represents approximately $1 billion recapitalisation of the business. “The sale is part of our announced program to recycle capital from non-core into core assets. You can expect to see further divestments as we review the business and redirect capital into activities where the Leighton group excels and where returns can be enhanced. Through the progressive execution of this strategy, we will both strengthen our balance sheet and fund our future growth from the existing capital base.”
It is estimated that the sale will generate a net pre-tax capital gain of approximately $115 million after completion. The capital gain has not been included in the underlying Net Profit after Tax guidance for the year ending 31 December 2012 of $400-$450 million. It is also estimated that the cash proceeds will reduce gearing by approximately two percentage points in this financial year.
Leighton Holdings Limited, founded in Australia in 1949, is the parent company of the Leighton Group, one of the world’s leading international contractors. Leighton Holdings owns and operates through a number of diverse and independent operating companies: Leighton Contractors, Thiess, John Holland, Habtoor Leighton Group, Leighton Africa, Leighton Asia, Leighton Welspun India, Leighton Offshore and Leighton Properties. These operating companies provide development, construction, contract mining, and operation and maintenance services to the infrastructure, resources and property markets.