Hochtief subsidiary increases stake in mining services firm
24 April 2024
Hochtief’s Australian subsidiary Cimic has increased its stake in mining services company Thiess, in response to the importance of the energy transition.
A Thiess hauler moves mining debris. (Image: CIMIC Group)
Cimic bought back an additional 10% equity interest in the Thiess business for A$320 million (US$208.1 million), taking its ownership of the company to 60%.
Cimic sold 50% of Thiess to funds advised by Elliott Advisors (UK) in 2020, which had a put option to sell back to Cimic between January 2024 and December 2026.
Following this latest deal, the put option for the remaining 40% is exercisable between April 2025 and December 2026.
Hochtief said that Cimic will now strengthen its governance over the day-to-day operations of Thiess and as a result, Hochtief and Cimic will fully consolidate the business into their financial accounts.
Hochtief CEO Juan Santamaría said, “Increasing our ownership of Thiess strengthens Cimic’s business profile, as it grows its commodities portfolio to include metals and minerals critical to the world’s shift to zero emissions and develops services to enable sustainable mining, reflects the strategic importance of the energy transition to the group.
“Thiess is a well performing business underpinned by long-term, low-risk contracts, providing a stable income and cash flow stream.”
