CIMIC OFFLOADS THIESS STAKE TO US FUND
ENGINEERING and construction giant CIMIC Group will sell a 50 per cent stake in Brisbane-based mining services provider Thiess to US fund manager Elliott for up to $1.9bn cash.
The deal, which caps off several months of talks between the two parties, values Thiess, founded in Toowoomba in 1934, at $4.3bn.
CIMIC expects to realise between $1.7bn and $1.9bn in cash from the deal.
It has flagged a pre-tax gain of about $2.2bn from the sale, and a post-tax gain of about $1.4bn, subject to certain adjustments.
“The sale agreement reflects Thiess’ ongoing strategic importance as a core activity for CIMIC,” said CIMIC chairman Marcelino Fernández Verdes.
“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.”
CIMIC will retain the other 50 per cent equity interest in Thiess under the deal, which remains subject to conditions including financing and regulatory approvals.
Thiess operates open-cut and underground mining services in Australia, Asia, Africa and the Americas.
It employs more than 14,000 people and generates more than $4.1bn in annual revenues. The company began life in 1934 focused on road-building and earth moving but later expanded into dam construction, mining and other forms of civil engineering. It was incorporated as Thiess Bros in 1947 and listed on the Sydney and Brisbane stock exchanges as Thiess Holdings in 1951. In 1983 Thiess was acquired by Leighton Holdings, which was rebranded CIMIC Group in 2015.