CIMIC increases Thiess ownership to 60%

CIMIC Group (ASX: CIM) has increased its ownership in global mining services provider Thiess to 60%.

The $320m acquisition has increased CIMIC’s shareholding by 10%.

CIMIC executive chairman Juan Santamaria says the increase will strengthen the company’s profile.

“Increasing our 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,” he said.

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

In 2020, CIMIC sold 50% of Thiess to Elliott Advisors with a put option back to CIMIC exercisable between January 2024 and December 2026. Following the 10% increase, the put option for the remaining 40% is exercisable between April 2025 and December 2026.

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

Recently, Thiess celebrated 90 years of operation during which time the company has grown across seven countries and three continents.

Thiess provides open cut and underground mining, asset management and sustainability focused solutions to clients around the world.