Diversified engineering company Cimic Group will reap between $1.7 billion and $1.9 billion on completion of the sale of 50 per cent of the world’s largest mining services contractor, Thiess to UK-based fund manager Elliott Advisors.
As foreshadowed in @AuManufactzuring the sale frees up capital for Cimic and brings in blue-chip investors managed by Elliott.
The agreement allows for future sale of the stake to as third party by Elliott, as well as an option for Cimic to buy back Thiess between three and six years of joint operation.
Cimic will retain full ownership of minerals processing company Sedgman.
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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