HOCHTIEF AG Leighton to sell 50% stake in Services
Business to Apollo
■ Sale values operations at EUR 710 Million
■ Approximately EUR 460 million in cash proceeds will reduce gearing at Leighton
Holdings
■ Company to be one of Australia's largest services firms
■ Another important milestone in delivering the strategy
Leighton Holdings today announced it had entered a binding agreement with funds managed by affiliates of Apollo Global Management, LLC (NYSE:APO) (together with its consolidated subsidiaries, "Apollo") to form a 50:50 investment partnership comprising the merged operations and maintenance services businesses of:
■ Thiess Services which includes: Communications, Energy Solutions, Asset & Infrastructure Services and Environmental Services; and
■ Leighton Contractors' Services which includes: Visionstream and Infrastructure
Services.
Apollo is a leading global investment firm with EUR 132 billion in assets under management and experience successfully partnering global corporates across the industries in which Leighton provides services.
The Services Business will be one of the largest services firms in Australia with combined
2014 revenue of more than EUR 1.46 billion, around EUR 2.65 billion of work in hand and approximately 6,400 skilled employees.
The details of the transaction are:
■ A price which represents an enterprise value for 100% of the assets (collectively
referred to as the Services Business) of EUR 710 million, subject to certain adjustments;
and
■ Approximately EUR 460 million in cash proceeds which will reduce gearing at Leighton
Holdings by around 10 percentage points.
CORPORATE COMMUNICATIONSDr. Bernd Pütter
Opernplatz 2
45128 Essen, Germany
Tel.: +49 201 824-2610
Fax: +49 201 824-2585 bernd.puetter@hochtief.de
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12/17/2014
HOCHTIEF Aktiengesellschaft , Sitz der Gesellschaft: Essen, Registergericht: Essen HRB 279, USt-IdNR. DE 1198 171 25, StNr. 5112/5710/0012, Vorsitzender des Aufsichtsrates: Pedro López Jiménez; Vorstand: Marcelino Fernández Verdes (Vorsitzender), Nikolaus Graf von Matuschka , José Ignacio Legorburo Escobar, Peter Sassenfeld
HOCHTIEF and Leighton CEO Marcelino Fernández Verdes: "As part of the Strategic Review announced in June 2014, we have undertaken a thorough analysis of the Services Business at Leighton to ensure we maximise opportunities in the growing industrial and civil infrastructure services sector. By choosing to partner with funds managed by Apollo, a leading global investment management firm, we gain access to Apollo's expertise in creating a single, integrated and efficient business. Moreover, we will continue to have exposure to
the growing services market with its longer-term contracts and steady cash flows, and we will be positioned to allocate funds to improving our gearing and balance sheet, and to financing future growth."
The Services Business will provide a comprehensive range of operational maintenance, design and construction, remediation, as well as asset and facilities management services to clients across the resources, telecommunications, transport, energy, water, health and industrial sectors.
The partnership is subject to customary regulatory approvals including Foreign Investment
Review Board and New Zealand Overseas Investment Office approval.
Dr. Bernd Pütter
Opernplatz 2
45128 Essen, Germany
Tel.: +49 201 824-2610
Fax: +49 201 824-2585 bernd.puetter@hochtief.de
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12/17/2014
HOCHTIEF Aktiengesellschaft , Sitz der Gesellschaft: Essen, Registergericht: Essen HRB 279, USt-IdNR. DE 1198 171 25, StNr. 5112/5710/0012, Vorsitzender des Aufsichtsrates: Pedro López Jiménez; Vorstand: Marcelino Fernández Verdes (Vorsitzender), Nikolaus Graf von Matuschka , José Ignacio Legorburo Escobar, Peter Sassenfeld
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