The sale to the group comprising of TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan is expected to provide UGL with net proceeds of $1-1.05 billion.
The deal is expected to help UGL concentrate on being a dedicated engineering, construction and maintenance service provider in the Australian, New Zealand and Southeast Asian markets.
“Over the past 18 months, the board has carefully evaluated various options to determine the optimal corporate structure for UGL, recognising that UGL is comprised of two distinct and sizeable businesses which operate in different markets, with different geographic focuses and strategic requirements,” UGL chairman Trevor Rowe said.
“The board continues to believe a structural separation of DTZ and Engineering is in the best interests of shareholders, and will be beneficial for both our clients and our people.”
A 50:50 UGL-Kentz joint venture landed a $US640 million ($A681 million) contract in February from the Inpex-led Ichthys LNG project for structural, mechanical and piping construction work.
In December, UGL won a new five-year contract with Chevron for the provision of maintenance services during the operational phase of Chevron’s Western Australian assets.
