CIMIC Group (ASX:CIM) announced that it had reached an agreement to divest all of its investment in Nextgen Group to Ontario Teachers’ Pension Plan (Ontario Teachers’).
Nextgen Group comprises the Nextgen Networks data connectivity services business, the North West Cable System, the Australia Singapore Cable Project and the Metronode data centre business.
CIMIC owns approximately 29% of Nextgen Group with Ontario Teachers’ holding the remaining interest.
On 29 June 2016 CIMIC announced that Nextgen Group had entered into a binding agreement with Vocus Communications to sell certain Nextgen Group assets, being Nextgen Networks, the North West Cable System and the Australia Singapore Cable Project (Networks Sale).
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Subject to the completion of the Networks Sale and certain other conditions including Foreign Investment Review Board approval, CIMIC has reached an agreement to divest all of its interest in Nextgen Group to Ontario Teachers’.
CIMIC To Receive Up To USD210M
The company expects to receive total net proceeds from its exit from Nextgen Group of approximately $190 million to $210 million, subject to commercial conditions, retention amounts, customary adjustments and deductions for transaction costs and debt.
The final financial impact on CIMIC will be known after completion of the divestment, expected by the end of 2016.
“The sale of our share in Nextgen Group enables us to realise the value built during our beneficial partnership with Ontario Teachers’. Our focus remains on the delivery of sustainable returns to all shareholders through our core businesses of construction, mining, mineral processing and public private partnerships,” CIMIC Group Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes said.
CIMIC Group Limited (ASX: CIM) is one of the world’s leading international contractors and the world’s largest contract miner. CIMIC Group has operations that have been in existence since 1934, was listed on the Australian Securities Exchange in 1962 and has its head office in Sydney, Australia. – BusinessNewsAsia.com