The sale of half of what’s been described as ‘the world’s largest mining services provider’ is due to be settled in the next week.
CIMIC Group’s 50 percent sale values Thiess at AUD4.3 Billion.
The group announced in October that it had entered into an agreement with funds advised by Elliott Advisors (UK) regarding the acquisition by Elliott of a 50 percent equity interest in Thiess, the world’s largest mining services provider.
In an October announcement, the company said: ‘The transaction will strengthen CIMIC’s balance sheet by generating cash proceeds on completion of A$1.7 to A$1.9 billion as well as reducing CIMIC’s factoring balance by approximately A$700 million and CIMIC’s lease liability balance by approximately A$500 million.’
Thiess delivers open cut and underground mining in Australia, Asia, Africa and the Americas, providing services to 25 projects across a range of commodities.
It has a diverse fleet of plant and equipment of more than 2,200 assets, a team of around 14,000 employees and generates annual revenues in excess of A$4.1 billion.
Thiess is included in CIMIC’s Mining and Mineral Processing segment with CIMIC company Sedgman, a leading provider of minerals processing and associated infrastructure solutions to the global resources industry.
CIMIC will retain 100 percent of Sedgman, generating A$400 million of annualised revenues with normalised profit before tax margins of around 10 percent.
The sale agreement reflected Thiess’ ongoing strategic importance as a core activity for CIMIC, said CIMIC Group Executive Chairman Marcelino Fernández Verdes.
“It capitalises on the robust outlook for the mining sector and, together with Elliott, we will pursue market opportunities in line with Thiess’ growth and diversification strategy,” he said.
Elliott manages more than US$40 billion in assets, including equity positions in private and listed companies, in Australia and globally.
Transaction completion, including receipt of cash proceeds, is expected to occur prior to the end of 2020, CIMIC said.