(MENAFN - ProactiveInvestors - Australia) Leighton Holdings (ASX: LEI) plans to sell 70% of its non-core telecommunications assets, with the company now in exclusive negotiations with Ontario Teachers' Pension Plan.
The sale will realise significant value for Leighton, with the sale price valuing 100% of the assets at A885 million.
The telecommunications assets include Nextgen Networks, Metronode and Infoplex.
The proposed sale follows the completion of a detailed strategic review of the company's assets that are considered non-core.
Ontario Teachers' Pension Plan will acquire the assets through its Long-Term Equities group, which focuses on direct investments with steady cash flow and growth potential over a long-term horizon, and a low to moderate level of risk.
Leighton plants to retain the funds raised from the sale within the company reducing its leverage.
The company will continue to provide construction, maintenance and field services to the telecommunications market through its subsidiaries Visionstream, Silcar (50% owned by Thiess) and John Holland Communications.