Construction giant Leighton Holdings will sell its John Holland subsidiary to a Chinese firm for around $1.15 billion.
Leighton has agreed to sell John Holland to CCCC International Holding Limited, a wholly-owned subsidiary of China Communications Construction Company, one of the world's largest construction companies.
The sale's enterprise valuation is approximately $1.15 billion, subject to certain adjustments, Leighton said in a statement on Friday.
Leighton chief executive Marcelino Fernandez Verdes said the sale was the result of a strategic review aimed at strengthening the company's balance sheet, streamlining operations and improving project delivery.
"The divestment of John Holland supports our focus on further reducing gearing and strengthening our balance sheet so that we can be sustainably competitive," he said.
The sale will reduce Leighton's debt by around 10 percentage points, while taking around $3.7 billion out of its annual revenue.
About 4,100 staff are expected to transfer from Leighton to CCCI as a result of the deal.
The deal is subject to approval from the Foreign Investment Review Board.