Transfield Services, the ASX-listed infrastructure specialist, has sold out of its New Zealand industrial construction joint venture with Worley Parsons for $A30 million ($NZ34.3m).
The Sydney-based company sold its stake in the venture to partner Worley to focus on Australian and US markets, and will use the cash to reduce debt, it said in a statement.
The partnership accounted for less than two per cent of its annual revenue of some $A3.45 billion, it said. “Though this is a good business, it was our only exposure to the New Zealand hydrocarbons sector,” Transfield resources and energy chief executive Joe Sofra said.
“The price paid represents good value for our shareholders and the cash from the sale will be applied to reducing our balance sheet gearing.”
The business designs, builds and maintains industrial process plants, offering a complete range of engineering and construction services across a full spectrum of industries, according to its website.
Transfield said it still provides telecommunications, electrical, road and facilities infrastructure services in New Zealand.
Last month Transfield made headlines in New Zealand over unpaid sub-contractors walking off work to build the nation’s ultra-fast broadband network.