(MENAFN- ProactiveInvestors - Australia) Leighton Holdings (ASX:LEI) has reached an agreement with Ontario Teacher's Pension Plan for the sale of about 70% of its telecommunications assets including Nextgen Networks, Metronode and Infoplex businesses.
The sale price values 100% of these assets at $885 million.
As part of the sale, Leighton has also agreed with Teachers' an appropriate ownership structure, through the joint venture, for Leighton's interest in these businesses from closing.
This includes a commitment to the JV vehicle for a minimum period of 3 years; both having equal board representation; and Leighton, while holding an economic interest of 20% or greater of the joint venture, has customary board and shareholder voting rights in relation to material joint venture decisions.
The sale is subject to performance of the sale agreement and various closing conditions including FIRB approval being obtained by Teachers'; consent of certain corporate and government customers and suppliers of the telecommunications business; the fulfillment of certain conditions to Teachers' financing arrangement; and no material adverse event having occurred.
Leighton's telecommunications businesses will remain headquartered in Australia and the transaction is likely to be close in mid-2013. Â
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