Cimic completes sale of half its Thiess subsidiary

Australian contractor Cimic has completed the sale of 50% of Thiess, the world’s largest mining services provider.  

The sale will generate US$1.7bn for Cimic, up from an earlier estimate of $1.3bn owing to “closing adjustments” and Thiess’ “final financial position”.

The deal was first announced in July 2020, with the original price given in October.

Juan Santamaria, Cimic’s chief executive (pictured), 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.”

The firm announced a 10% share buyback scheme in December.

Image courtesy of Cimic