Hochtief to hike Leighton stake

Hochtief has announced an AU$ 1.16 billion (US$ 1.04 billion) cash offer to increase its holding in Australian contractor Leighton to nearly 75%. The German company already holds a 58.8% stake in Leighton and says it intends to increase its representation on Leighton’s Board in line with the higher ownership.

Hochtief’s bid is an all-cash offer of AU$ 22.15 (US$ 20.01) per share offer on an ex-dividend basis, which is to say the next dividend from Leighton would remain with the current shareholders, rather than Hochtief. The company says this represents an 18.8% premium on Leighton’s average share price in the five days up to the offer being made.

The offer is subject to regulatory approval.