Leighton Holdings has sold its John Holland infrastructure business to China Communication Construction Company (CCCC), one of the world’s biggest contractors, for $933mn.
The sale follows a strategic review of operations by the Australian contractor, which is a 45% shareholder in Dubai-based Habtoor Leighton Group.
Leighton Holdings also announced that it has agreed a deal with New York-listed private equity firm Apollo Global Management (Apollo) to sell a 50% stake in its combined operations and management businesses in a deal which values the group at over $870mn and which will raise around $570mn to allow the contractor to cut its debts.
The company’s executive chairman and CEO Marcelino Fernández Verdes said the sale of the John Holland business, which is an engineering and contracting business that specialises in transport and rail projects, “supports our focus on reducing gearing and strengthening our balance sheet so that we can be sustainably competitive”.
He added that some of the proceeds would be reinvested on building its private finance/PPP business.
The deal will see more than 4,100 employees and work with a value of $5.4bn transferring to CCCC, which is the world’s fourth-biggest contractor by revenues.