International contractor Leighton is selling its engineering subsidiary John Holland for $1.15 billion to Chinese company CCCC International Holding Ltd.
CCCI is a wholly-owned subsidiary of China Communications Construction Company (CCCC), the fourth largest construction company in the world by revenue, with a market cap of $A23.5 billion.
Leighton CEO Marcelino Fernández Verdes says the divestment of is part of the company’s strategic review initiatives to strengthen the balance sheet.
The money will be used to pay down debt.
The sale will mean a cut in Leighton’s annualised revenue of about $3.7 billion. About 4,100 employees, from almost 50,000 in the group, go with the business.
Leighton’s shares are trading up 1.38% to $22.00.