Diversified engineering company Cimic Group is to bring in an equity partner to ownership of the world’s largest mining services contractor, Thiess.
Cimic announced that it was looking to sell up to 50 per cent of Thiess, strengthening CIMIC’s balance sheet.
Cimic has entered into an exclusive agreement and is in advanced negotiations with funds advised by British-based Elliott Advisors on the sale of the share.
Cimic told investors: “The introduction of an equity partner into Thiess would capitalise on the robust outlook for the mining sector and provide capital for Thiess’ continued growth, while enabling Cimic to maintain its strong balance sheet.
“Cimic expects that the advanced negotiations will conclude in the coming weeks with a share purchase agreement.”
Thiess is an engineering-led company that provides mining, processing, transporting and mine remediation services.
Its installations require significant capital investment in processing equipment, conveyors and ongoing maintenance and re-manufacturing.
Cimic owes its beginnings to railway rolling stock construction in the 19th century, and controls a range of well known businesses such as UGL, Thiess, civil engineer CPB contractors, construction firm Leighton Asia and Sedgeman mineral processing equipment.
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