Hochtief, a global infrastructure group with major presence in the GCC region, said one of its key subsidiaries Cimic Group has signed an exclusivity agreement with UK-based Elliott Advisors for a 50 per cent equity partnership in its Australian-based mining unit Thiess.
Hochtief holds a 77.1% stake in Cimic Group, an Australian multinational contractor active in the engineering and infrastructure, building and property, mining and resources and telecommunications sector.
Cimic said it is in advanced negotiations with funds advised by Elliott Advisors regarding the potential investment by Elliott into 50% of the share capital of Thiess, the world’s largest mining services provider, which would provide joint control of Thiess to Cimic and Elliott.
The introduction of an equity partner into Thiess would capitalise on the robust outlook for the mining sector and provide capital for Thiess’ continued growth, while enabling CIMIC to maintain its strong balance sheet, it stated.
Advanced negotiations will conclude in the coming weeks with the inking of a share purchase agreement that will be subject to the customary conditions including all regulatory approvals, it added.-TradeArabia News Service