Leighton to sell 70 per cent of telco assets for $885m
- 20 February, 2013 16:15
Leighton Holdings plans to sell 70 per cent of its telecommunications assets to the Ontario Teachers’ Pension Plan.
Leighton Holdings' telco assets include Nextgen Networks, Metronode and Infoplex.
According to the statement on the ASX, Leighton said the sale price values 100 per cent of these assets at $885 million.
The sale is subject to final negotiations, definitive documentation, the completion of due diligence and closing conditions such as the consent of various counter-parties.
Leighton CEO, Hamish Tyrwhitt, said it realigned the Group’s investment portfolio and was focused on growing profitably from its existing capital base.
“A key element of our strategy is the recycling of capital such as our telecommunications infrastructure assets, which are considered non-core,” Tyrwhitt said. “We are pleased to have reached an exclusive negotiating position with Teachers’, which is known for its global direct investment program and is a significant owner of assets in a number of countries including Australia. When the sale completes, we look forward to working with Teachers’ as our partner in the ownership of these assets.”
Tyrwhitt said it was still committed to providing construction, maintenance and field services to the telco market through its subsidiary brands, Visionstream, Silcar and John Holland Communications.
“The sale will enable us to continue to provide these services, which are core telecommunications competencies to an active market that is continuing to provide numerous opportunities without having to wholly-own the telecommunications assets,” he said.
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