HOCHTIEF subsidiary Leighton Holdings announces it had entered a binding agreement for the sale of John Holland to CCCC International Holding Limited (CCCI). The company will purchase John Holland for an enterprise valuation of approximately €770 mln subject to certain adjustments.
CCCI is a wholly-owned subsidiary of China Communications Construction Company (CCCC), the fourth largest construction company in the world by revenue. CCCC has a market capitalization of approximately €15.7 bln and is listed on the Hong Kong and Shanghai stock exchanges.
Marcelino Fernández Verdes, CEO of HOCHTIEF and Leighton Holdings Executive Chairman and CEO: "In June 2014 we announced that, as part of our Strategic Review we were analyzing options for our Services, Property and John Holland businesses, including the potential divestment of, or introduction of new partners to, these businesses. The divestment of John Holland supports our focus on further reducing gearing and strengthening our balance sheet so that we can be sustainably competitive." Proceeds will also be used to finance future growth, particularly in Public Private Partnerships.