Leighton Holdings Limited
(ASX:LEI) will take full ownership of its Indian-based joint venture with Welspun Group after buying its partner’s stake for $US99 million.
The construction giant says it decided to buy Welspun’s 39.9 per cent interest following a decision by Welspun to reposition its infrastructure business and focus on its core business.
The JV was established in 2010 and is geared to capitalise on opportunities in the Indian infrastructure sector. Leighton says it continues to see strong long term prospects in the Indian market and will rename the business Leighton India.
The transaction is expected to be finalised in the first quarter of 2014 and will have a negative impact of about $70 million on the company’s full year net profit after tax.
Leighton says its underlying net profit after tax will not be impacted and remains forecast to reach between $520 to $600 million.
Leighton Holdings reported a net profit of $360 million in the first half of the 2013 calendar year.
