Leighton Holdings' Boss Says Some Of Its Assets Will Be Sold Off

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Leighton Holdings is looking to sell off a number of assets as it attempts to reduce debt levels, strengthen its balance sheet and improve its operating model.

Releasing its strategic review today, Leighton executive chairman and CEO Marcelino Fernández Verdes said the company is focussing on recovering receivables and improving its working capital management.

“We are analysing options for our services, property and John Holland businesses, including the potential divestment or introduction of new partners to these businesses,” Fernández Verdes said.

“Cash receipts from receivables and divestments will be used to reduce our gearing and strengthen out balance sheet so as to increase our competitiveness.”

To get the process moving Leighton has appointed external advisors and will begin discussions with potential investors.

Leighton said it will also be looking to consolidate some of its operations and increase transparency across its groups including the construction, mining and engineering arms.

“By reorganising these activities we will create economies of scale, thereby lowering our cost base and helping to improve our competitive advantage and create value for the benefit of all stakeholders,” Fernández Verdes said.

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