- CIMIC Group’s (CIM) investment, Venita, is set to acquire Broadspectrum after receiving approval from Australia’s Foreign Investment Review Board
- The acquisition is valued at $485 million and was arranged by Ventia and Broadspectrum’s parent company, Ferrovial
- Formerly known as Transfield Services, Broadspectrum has more than 60 years’ experience in the infrastructure and maintenance sector
- Working in the same sector, Ventia is 50 per cent funded by the international contracting giant CIMIC Group, through a partnership with Apollo Global Management
- With the approval received, the acquisition is expected to be finalised on June 30
- CIMIC Group are steady at market open, trading for $27.49 per share
CIMIC Group’s (CIM) investment, Venita, is set to acquire Broadspectrum after receiving approval from Australia’s Foreign Investment Review Board.
Announced late last year, the acquisition is valued at $485 million and was arranged by Ventia and Broadspectrum’s parent company, Ferrovial.
Formerly known as Transfield Services, Broadspectrum has more than 60 years’ experience in Australia’s infrastructure and maintenance sector.
Ventia, which also works in infrastructure maintenance, was originally formed when Leighton Contractors Services, Thiess Services and Visionstream merged in 2015. Ventia is 50 per cent funded by international contracting giant CIMIC Group, through a partnership with Apollo Global Management.
Venita is funding the buyout through existing cash, as well as acquisition debt financing. Once combined, the two companies will generate over $5 billion in revenue.
With the approval received, the companies expect to finalise the acquisition on June 30.
Ventia’s Chairman, David Moffatt said he was looking forward to the combined companies’ exciting future.
“Our two businesses are highly complementary, and together, we will provide a broader, deeper and more compelling infrastructure services offering to our clients across Australia and New Zealand,” David added.
After reaching a five-year low in mid-March, CIMIC’s market share has been steadily improving in recent weeks, increasing almost 20 per cent since in the last 30 days.
Due to the historically low share price, CIMIC’s Group’s majority holder, Hochtief Australia, has recently been increasing its interest in the company. After purchasing a further 4.3 million shares in March, Hochtief now owns a 74.13 per cent interest in CIMIC Group.
CIMIC Group are steady at market open, trading for $27.49 per share at 10:26 am AEST.