CIMIC increases interest in Thiess

CIMIC Group (ASXLCIM) has entered into an agreement with funds advised by Elliott Advisors (UK) to acquire an additional 10% equity interest in global mining services firm Thiess.

The $320 million transaction increases CIMIC’s ownership of Thiess to 60%.

CIMIC and Elliott will continue to have equal board representation while CIMIC will strengthen its governance over the day-to-day operations of the company.

Consequently, CIMIC will fully consolidate Thiess in its financial accounts. The company says the acquisition will be positive for its credit ratings.

CIMIC sold 50% of Thiess to Elliott in 2020, with a put option back to CIMIC exercisable between January 2024 and December 2026.

Following this transaction the put option for the remining 40% is exercisable between April 2025 and December 2026.

CIMIC Group Executive Chairman Juan Santamaria says increasing its 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, reflecting the strategic importance of the energy transition to CIMIC.

“Thiess is a well performing business underpinned by long-term, low-risk contracts, providing an annuity-style income stream and stable cash flows,” he says.

Thiess is a global diversified mining services company, providing open cut and underground mining, asset management and sustainability focused solutions to clients around the world.

With more than 15,000 employees, the company operates in Australia, Asia, and the Americas across more than 60 projects and had 2023 revenue of $5.9 billion.

Write to Adam Orlando at Mining.com.au

Images: CIMIC & Thiess
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.