This article is from the Australian Property Journal archive
LEIGHTON has entered into a partnership with Macmahon Holding.
Under the partnership, Leighton will promote Macmahon as a “Partner of Choice” to joint venture on large infrastructure and resources related construction projects.
Leighton currently has a 15% shareholding in Macmahon.
Leighton Holdings’ chief executive Wal King said the agreement represents a good outcome for shareholders of both Leighton and Macmahon.
“We see very strong infrastructure and resources markets in Australia at the moment and the outlook remains very positive. Having a partner of choice relationship with Macmahon increases the Leighton Group’s ability to take on and execute work, while boosting Macmahon’s ability to take on major projects,” King said.
Macmahon Holdings’ chief executive Nick Bowe, said that the company’s expansion into the East Coast has continued to gain momentum and that Macmahon was emerging as a top-tier contractor in the national construction market.
The agreement has an initial period of two years, during which Leighton agrees not to acquire any equity securities of Macmahon beyond 19.9% of the issued capital of Macmahon without the prior written consent of Macmahon.
Leighton has also nominated a director to the Macmahon board.
Australian Property Journal
