German construction giant Hochtief to raise stake in Australia’s Leighton

10 Mar 2014

German construction major Hochtief AG yesterday said that it intends to offer A$1.16 billion ($1.05 billion) to increase its stake in Australian construction group Leighton Holdings Ltd from 58.8 per cent to 74 per cent.

The Essen-based company plans to make a conditional off-market offer to acquire 3 out of 8 shares not owned by Hochtief for A$22.15 cash per share, representing a 18.8 per cent premium over the 5 day volume weighted average price of A$18.65 per Leighton share.

Hochtief, owned by Spanish construction group ACS, also announced that it intends to increase its representation on the Leighton's board to reflect its shareholding.

Sydney-based Leighton Holdings is the parent company of the Leighton Group, one of the world's leading construction contractors and the world's largest contract miner.

The group operates in more than 20 countries in Australia, Asia, the Middle East and Southern Africa in diverse areas including construction, contract mining, operation and maintenance and infrastructure development through a number of diverse and independent operating companies ---- Leighton Contractors; Thiess; John Holland; Leighton Asia, India and Offshore; and Leighton Properties.

It also has a 45-per cent investment in the Habtoor Leighton Group in the Middle East.