Latest News

CIMIC announces Nextgen Group divestment

CIMIC Group has announced its agreement to divest all of its investment in Nextgen Group to Ontario Teachers’ Pension Plan.

Nextgen Group comprises the Nextgen Networks data connectivity services business, the North West Cable system, the Australia Singapore Cable Project and the Metronode data centre business.¬†CIMIC owns approximately 29 per cent of Nextgen Group with Ontario Teachers’ holding the remaining interest.

On 29 June 2016, CIMIC announced that Nextgen Group had entered into a binding agreement with Vocus Communications to sell certain Nextgen Group assets, those being Nextgen Networks, the North West Cable System and the Australia Singapore Cable Project (Networks Sale). Subject to the completion of the Networks Sale and certain other conditions including Foreign Investment Review Board approval, CIMIC will divest all of its interest in Nextgen Group to Ontario Teachers’.

CIMIC expects to receive total net proceeds from its exit from Nextgen Group of approximately $190 million to $210 million, subject to commercial conditions, retention amounts, customary adjustments and deductions for transaction costs and debt. The final financial impact of CIMIC will be known after completion of the divestment, expected by the end of 2016.

“The sale of our share in Nextgen Group enables us to realise the value built during our beneficial partnership with Ontario Teachers’,” said Marcelino Fernandez Verdes, CIMIC Group executive chairman and chief executive officer.

“Our focus remains on the delivery of sustainable returns to all shareholders through our core businesses of construction, mining, mineral processing and public private partnerships.”

Send this to a friend