Leighton Holdings Limited
(ASX:LEI) has tied up its purchase of Leighton Welspun and will rename the business Leighton India after buying its partner’s stake for $US99 million.
The construction giant flagged the purchase at the end of 2013 and said it would take full ownership of its Indian-based joint venture through buying Welspun’s 39.9 per cent interest. Leighton says all procedural conditions have now been completed and settlement has occurred.
At the time of announcing the purchase Leighton spruiked the long term prospects of the Indian market.
Leighton also previously advised the transaction is expected to have a negative impact of about $70 million on the company’s full year net profit after tax. The company’s underlying net profit after tax is forecast not to be impacted and reach between $520 to $600 million.
Leighton Holdings reported a net profit of $360 million in the first half of the 2013 financial year.
