Australia’s largest contractor, Cimic Group, has announced the sale of 50% of Thiess, the world’s largest mining services company, to UK investment manager Elliott Advisers.
The deal, which will be worth about US$1.3bn, has been in the pipeline since July, when it was announced alongside Cimic’s half-year results.
Elliott and Cimic will jointly control Thiess’ operations, financial and dividend policies, in accordance with a shareholders’ agreement. The deal will result in a $1bn gain for Cimic, after tax.
Marcelino Fernández Verdes, Cimic Group’s chairman, said: "The sale agreement reflects Thiess’ ongoing strategic importance as a core activity for Cimic. It capitalises on the robust outlook for the mining sector and, together with Elliott, we will pursue market opportunities in line with Thiess’ growth and diversification strategy."
Despite the Theiss sale, Cimic will retain all the shares of mining and mineral subsidiary Sedgman, which generates $284m of revenue and enjoys a pre-tax profit margin of about 10%.
Image: Marcelino Fernández Verdes (www.hispanidad.com)