After first announcing its intent in mid-October, CIMIC Group confirmed on 31 December it had finalised the sale of a 50% interest in Thiess to Elliot Advisors.
The interest sold, which is worth about A$4.3 billion, generated approximately A$2.2 billion in cash for CIMIC – more than anticipated due to transaction closing adjustments and the business’ financial position.
CIMIC Group Executive Chairman and Chief Executive Officer Juan Santamaria said its retention of the remaining 50% of Thiess speaks to the company’s ongoing strategic importance to its overall business.
“The sale … enables us to capitalise on the sector outlook and Thiess’ strong performance. 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.”
Thiess delivers both open-cut and underground mining in Australia, Asia, Africa and the Americas. It has a fleet of plant and equipment of more than 2,200 assets.
Thiess is within CIMIC’s mining and mineral processing segment with CIMIC company Sedgman. CIMIC will retain 100% of Sedgman.