Leighton sells major Australian construction firm to Chinese for AUD1.15 billion

SYDNEY - Leighton Holdings has entered a binding agreement to sell its subsidiary contractor John Holland to CCCC International Holding Limited (CCCI), a wholly-owned subsidiary of China Communications Construction Company (CCCC), the fourth largest construction company in the world by revenue.

CCCI will purchase John Holland for an enterprise valuation of approximately AUD1.15 billion, subject to certain adjustments.

CCCC has a market capitalisation of approximately AUD23.5 billion and is listed on the Hong Kong and Shanghai stock exchanges.

Leighton Holdings Executive Chairman and CEO, Marcelino Fernández Verdes, said the sale of John Holland, one of Australia’s leading engineering and construction companies, supported Leighton’s focus on further reducing gearing and strengthening its balance sheet so that the company could be sustainably competitive.

Proceeds will also be used to finance future growth, particularly in Public Private Partnerships (PPPs) he said. Approximately 4,100 employees will transfer to CCCI with the business.  www.leighton.com.au (ATI).