CIMIC nears sale of Thiess stake

Looking over the Mt Owen site. Image: Thiess.

CIMIC Group is in the final stage of negotiations with a new investor in Thiess as it looks to offload a 50 per cent stake in the mining services company.

CIMIC group executive chairman Marcelino Fernández Verdes stated that due diligence was completed and negotiations should be finalised “in the coming days”.

Finding Thiess an alternative equity partner will strengthen CIMIC financially and allow for Thiess’ continued growth, according to Fernández.

“The introduction of an equity partner into Thiess capitalises on the outlook for mining, provides capital for Thiess’ continued growth and enables CIMIC to strengthen its balance sheet,” he said.

With this in the pipeline, CIMIC’s outlook remains positive as operating conditions approve following the COVID-19 pandemic.

“We are seeing improved operating conditions which is providing momentum as we enter the last quarter of the year,” Fernández Verdes said.

“Governments have announced numerous stimulus packages in our core construction and service markets and the mining market is proving resilient.”

The CIMIC Group is working alongside the Australian Government to fast-track mining, services and construction projects to support its clients and generate sustainable, cash-backed profits.

During the third quarter, CIMIC had won a major mining services contract at Mount Owen in New South Wales via Thiess.

As of September, CIMIC had around $25 billion of tenders expected to be bid or awarded for the remainder of this year, subject to the COVID-19 situation and $525 billion of projects coming to the market for 2021 and beyond.

“Looking ahead, infrastructure investment will be a valuable contributor to the economic recovery from COVID-19 and we are encouraged by the substantial investment programs in the regions where we operate,” Fernández Verdes concluded.

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