Lendlease (ASX:LLC) divests services arm for $310m

Company News

by Lauren Evans

Lendlease (ASX:LLC) has announced it has entered into an agreement with Service Stream (ASX:SSM) for the sale of its Services business for $310 million. The transaction, which is expected to complete prior to the end of calendar year 2021, is subject to conditions including client and third party consents. 

Lendlease is property group specialising in project management and construction, real estate investment and development. Service Stream provides integrated asset life-cycle services to utility and telecommunications asset owners, operators and regulators across Australia.

Global chief executive officer Tony Lombardo said, “The divestment of the Services business, along with other recent divestments including the sale of the Engineering business and the US Telecommunications and Energy businesses, aligns with the Group strategy to be more focused on the areas where our competitive edge is the strongest.”

Lendlease Services managing director Toby Matthews said, “Service Stream is a leader in the sector, and our skilled workforce, customer relationships and extensive workbook will significantly expand its operations across Australia.”

Shares in Lendlease (ASX:LLC) are trading 3.2 per cent higher at $11.80.

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