The contractor said it had entered into a non-binding agreement to divest VDM Constructions (Eastern Operations) for a consideration of $A2.7 million by way of a share purchase agreement to an outside party.

VDM expects to enter into a binding share sale agreement by the end of September, with the transaction completed by October 1.

The company said the sale was part of its strategy to concentrate on rebuilding for its future.

The news follows less than two weeks on a statement by VDM that it had cut 40 positions, with more redundancies expected, in an ongoing restructuring effort.

It was spurred by the company’s removal from a project site due to a dispute over the status of a material contract.

After contributing substantially to VDM’s FY2013 net loss of $84.4 million and resulting in the termination of a share subscription agreement as well as a slide in share value, the dispute prompted a broader strategic pivot by the company.

Payment of an unspecified value for works performed by VDM at the site remains to be resolved.