Australia’s Leighton says forms $880 million joint venture with Apollo Global for services units-Reuters

SYDNEY (Reuters) – Australia-listed construction giant Leighton Holdings Ltd (LEI.AX) said it had formed a joint venture with New York-listed Apollo Global Management LLC (APO.N) to run its services businesses, valuing the firms at A$1.08 billion ($880 million).

Sydney-based, Spanish-controlled Leighton said on Wednesday that it and Apollo agreed to form a 50:50 investment partnership covering a range of Leighton-owned services businesses spanning the communications, energy and other infrastructure sectors.

The deal valued the Leighton businesses at A$1.075 billion and would give Leighton cash proceeds of A$700 million, reducing its debt gearing by about 10 percentage points.

Leighton, controlled by Spain’s ACS Actividades de Construccion y Servicios SA (ACS.MC) through its German subsidiary Hochtief AG (HOTG.DE), has been looking to sell or partly sell businesses to cut debt and exposure to the ailing mining industry.

The firm last week said it sold its building unit to China Communications Construction Co Ltd (CCCC) (601800.SS) for A$1.15 billion.