Australian construction company Leighton Holdings is in exclusive negotiations to sell off 70% of its telecoms assets to the Ontario Teachers’ Pension Plan for A$620m (US$642m).
As TelecomFinance previously reported, the US$117.1bn Canadian pension fund…
Australian construction company Leighton Holdings is in exclusive negotiations to sell off 70% of its telecoms assets to the Ontario Teachers’ Pension Plan for A$620m (US$642m).
As TelecomFinance previously reported, the US$117.1bn Canadian pension fund was said to have entered the bidding process last month.
In an announcement today, Leighton confirmed its talks with the pension fund and valued its total telecoms assets at A$885m (US$916m). The majority stake sale is subject to factors including final negotiations and the completion of due diligence.
Leighton is looking to sell off its fibre optic network operator NextGen Networks, as well as data centre provider Metronode and cloud computing service provider Infoplex.
Hamish Tyrwhitt, CEO of Leighton Holdings, said in today’s statement that the sale was part of the company’s strategy to recycle capital of non-core assets.
“We have worked through an extensive sale process which elicited a range of interested parties,” he said.
“We are very pleased to have reached an exclusive negotiating position with Teachers’, which is well known for its global direct investment program and is a significant owner of assets in a number of countries including Australia.”
Cash proceeds from the sale will be retained within the company to reduce leverage.
A number of firms had expressed an interest in Leighton’s telecoms assets. PCCW was previously reported to be preparing a US$300m bid for Metronode and Infoplex. Australian telco TPG Telecom and PE firms KKR and Providence Equity were previously said to have been considering bids.
Macquarie Capital is advising Leighton on the sale.
