Leighton signs HWE agreement

LEIGHTON Contractors has finalised an agreement to buy the mining business of failed contractor Henry Walker Eltin for $A215 million.
Leighton signs HWE agreement Leighton signs HWE agreement Leighton signs HWE agreement Leighton signs HWE agreement Leighton signs HWE agreement

 

James Bowen

HWE’s administrators announced they had entered into a binding sale agreement with Leighton yesterday following a preliminary arrangement made on November 10.

The sale remains subject to Leighton gaining the approval of the Foreign Investment Review Board, but the transaction should be completed in mid-December this year.

The terms of the agreement require Leighton to make a cash payment to HWE of $A215 million; the replacement of all existing bank-guaranteed performance bonds associated with HWE Mining; and the assumption of certain obligations of HWE Mining under its current finance and operating leases and hire and hire-purchase agreements.

The mining arm is HWE’s largest business and contributed $A695.7 million, or about 62% of the group’s total revenue, in the year to the end of June 2004.

ConstructionEquipmentNews.net

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