Leighton Mulls Sale of Key Assets to Cut Debt

   By Ross Kelly 
 

SYDNEY--Leighton Holdings Ltd. (LEI.AU), Australia's biggest construction company, said Thursday it could sell part or all of several big businesses to help reduce debt.

The strategic shift comes after senior management at Hochtief AG (HOT.XE) ousted the chairman and chief executive of Leighton and increased their controlling stake in the company, which has a market value of A$6.7 billion.

Hochtief itself is controlled by Spain's de Construccion y Servicios SA (ACS.MC).

Leighton said it had hired external advisers to consider a sale of its property development, services and John Holland units. John Holland provides engineering services to the infrastructure, energy, resources and transport sectors in Australia, New Zealand, South East Asia and the Middle East.

"Cash receipts from receivables and divestments will be used to reduce our gearing and strengthen our balance sheet so as to increase our competitiveness," Leighton Executive Chairman Marcelino Fernandez Verdes said in a statement.

The company said it also planned to reduce costs by "streamlining our operating model." It didn't mention any job cuts. A Leighton spokeswoman wasn't available to give any more details.

Write to Ross Kelly at [e-mail]

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