Mid-Cap

CIMIC tapping the international footprint

July 04, 2016 | Team Kalkine
CIMIC tapping the international footprint

 
Cimic Group (ASX: CIM) has risen 2.71% in the last five days (as at July 01, 2016) on account of winning various contracts. CIMIC Group company Leighton Contractors (Asia) Limited has been selected by the Government of the Hong Kong Special Administrative Region with regard to construction of a Columbarium and Garden of Remembrance. This contract is expected to generate revenue to CIMIC of about A$320 million.
 
Group company Leighton Asia through its subsidiary Leighton India Contractors has also entered into an alliance agreement for the delivery of phases two and three of the Maker Maxity project in Mumbai in India. The agreement is expected to generate revenues of approximately A$223 million (approximately USD 169.5 million) for the company. The Maker Maxity project is a premium mixed use development located in the Bandra Kurla complex, which is an area that is developing into a major investment banking hub; and phases two and three consist of a premium retail and hospitality development. CIMIC group executive chairman and chief executive officer Marcelino Fernandez Verdes said that the award illustrated the reputation of Leighton Asia in delivering excellent results and is a major achievement in a competitive market. Leighton Asia managing director Manuel Alvarez Munoz said that the company was delighted to secure the first major project with the Maker Group, which is one of the most prestigious developers in India. Leighton Asia brings its international experience, wealth of local knowledge and commitment to safety and quality to facilitate the timely completion of this major project. The scope of the work includes retail development as well as hospitality development. The work commenced in June 2016, with completion targeted for mid-2019.
 
The group owns 29% of Nextgen group and lately announced for sale of Nextgen Group assets worth $861 million to Vocus Communications. The group was formerly known as Leighton Holdings and changed its name to CIMIC Group as the new Spanish owners of the group sought to distance themselves from allegations of corruption and jettisoned the brand which has existed for more than 60 years. CIMIC stands for Construction, Infrastructure, Mining and Concessions and has followed the acquisition by the Spanish construction group ACS one year ago and the subsequent restructuring of the group. The board regarded the change in name as appropriate to support the transformation to a new operating model and the new name is intended to provide a better idea of what the group is and what it does.


Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.