Leighton Holdings today announced the sale of the Thiess business which involves waste collection, recycling and recovery; landfill ownership, development and management; and waste to energy and alternative waste treatment technologies.

The sale is subject to certain conditions, including novation of major customer contracts, but completion is expected to occur during the current financial year.

"I am very pleased to be able to announce the successful sale of Thiess Waste Management,” Leighton Holdings chief executive Hamish Tyrwhitt said.

“Together with the disposal of HWE last year, this sale represents approximately $1 billion recapitalisation of the business.”

Tyrwhitt said the sale was part of Leighton’s overall strategic plan to realign the business.

“The sale is part of our announced program to recycle capital from non-core into core assets,” he said.

“You can expect to see further divestments as we review the business and redirect capital into activities where the Leighton group excels and where returns can be enhanced.

“Through the progressive execution of this strategy, we will both strengthen our balance sheet and fund our future growth from the existing capital base.”

It is estimated the sale will generate a net pre-tax capital gain of approximately $115 million after completion.

Remondis has received all necessary regulatory approvals to complete the transaction including clearance from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

This article first appeared in ILN's sister publication ConstructionIndustryNews.net.