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- CIMIC Group (CIM) will begin 2021 with a $2.2 billion cash boost thanks to the completion of the 50 per cent sale of Thiess
- The ASX 200 company first announced its intention to sell half of Thiess in October when it entered a sale agreement with fund management company Elliott Advisors
- It was then announced on December 24 that all relevant material had been signed
- According to CEO Juan Santamaria, CIMIC will use the funds to strengthen its balance sheet and pursue growth opportunities
- CIMIC is up a slight 0.69 per cent on the market with shares currently trading at $24.78
CIMIC Group (CIM) will begin 2021 with a $2.2 billion cash boost thanks to the completion of the 50 per cent sale of Thiess.
The ASX 200 company first announced its intention of selling half of Thiess in October when it entered a sale agreement with Elliott Advisors.
Elliott Advisors is one of the oldest fund managers and manages more than US$40 billion (around A$52 billion) in assets.
Both companies will hold 50 per cent of the world’s largest mining services provider and the sale has valued Thiess at approximately $4.3 billion as a whole.
On December 24, it was announced that CIMIC had signed all relevant material to sell half of Thiess.
“The sale of 50 per cent of Thiess enables us to capitalise on the sector outlook and Thiess’ strong performance,” Executive Chairman and CEO Juan Santamaria commented.
“The transaction proceeds will primarily be used to strengthen our balance sheet through the reduction of debt, while also providing additional capital to pursue organic growth prospects as well as broader capital allocation opportunities,” he said.
“Our retention of the remaining 50 per cent reflects the ongoing strategic importance of Thiess to our business,” he added.
Thiess delivers open cut and underground mining services throughout Australia, Asia, Africa and the America’s.
It has been awarded multiple contracts and extensions, totalling more than $342 billion.
CIMIC is up a slight 0.69 per cent on the market with shares trading at $24.78 at 11:12 am AEDT.
