Leighton Sells Half of Services Arm to Apollo Global

By Rebecca Thurlow And Daniel Stacey 

SYDNEY--Australia's biggest construction company Leighton Holdings Ltd. has agreed to sell half of its services arm to private-equity firm Apollo Global Management for cash proceeds of 700 million Australian dollars (US$570 million).

Leighton said Wednesday it will form a 50:50 joint venture partnership with Apollo comprising the services division, which builds and manages communications, energy and infrastructure projects across Australia. The venture will use the Leighton and Thiess brand names.

Apollo's purchase sees it further expand its focus on construction and engineering services firms, branching out beyond its traditional focus on real estate and debt.

The deal gives the services business an enterprise value of A$1.075 billion and will reduce Leighton's gearing by about 10 percentage points, the company said in a statement to the Australian Securities Exchange.

Write to Rebecca Thurlow at [e-mail] and Daniel Stacey at [e-mail]

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