Australian construction company Leighton Holdings has reached an agreement with the Ontario Teachers’ Pension Plan to sell off 70% of its telecoms assets for around A$620m (US$647m).
The deal is expected to close in mid-2013, according to an…
Australian construction company Leighton Holdings has reached an agreement with the Ontario Teachers’ Pension Plan to sell off 70% of its telecoms assets for around A$620m (US$647m).
The deal is expected to close in mid-2013, according to an announcement from Leighton today.
As TelecomFinance previously reported, the US$117.1bn Canadian pension fund was said to have entered the bidding process in January.
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, as part of the company’s strategy to recycle capital of non-core assets.
“Teachers’ is a sophisticated investor that will bring enhanced financial strength and access to capital,” said Hamish Tyrwhitt, CEO of Leighton, in today’s statement. “We have developed an ownership structure that is well positioned to maximize the growth potential of these telecommunications businesses.
“Leighton’s telecommunications businesses will remain Australian headquartered and managed with the existing management team remaining largely in place. As we move towards finalisation of the sale, our focus remains absolutely on servicing the needs of existing customers.”