CIMIC Group today announced it had completed the sale of 50% of Thiess, the world’s largest mining services provider.
As previously advised, the price for 50% of the equity interest in Thiess implies an enterprise valuation of approximately $4.3 billion (based on 100% of Thiess).
The transaction generates approximately $2.2 billion in cash proceeds for CIMIC. The increase in the transaction cash proceeds compared to the previously estimated range is due to transaction closing adjustments and the final financial position of the underlying Thiess business.
CIMIC Group Executive Chairman and Chief Executive Officer Juan Santamaria said: “The sale of 50% of Thiess enables us to capitalise on the sector outlook and Thiess’ strong performance.
“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.
“Our retention of the remaining 50% reflects the ongoing strategic importance of Thiess to our business.”