# CIMIC Group Increases Stake in Thiess, Aims for Enhanced Control and Sustainable Mining Growth

- Link: https://www.directorstalkinterviews.com/cimic-group-increases-stake-in-thiess-aims-for-enhanced-control-and-sustainable-mining-growth/4121153487
- Published: 2024-04-24T10:03:55+01:00
- Author: Anthony Fox

**CIMIC Group Limited** (ASX:CIM) has announced the acquisition of an additional
10% equity interest in Thiess, one of the leading global mining service providers,
from funds advised by Elliott Advisors (UK) Ltd. This strategic move boosts CIMIC’s
ownership stake to 60%, marking a significant step in its efforts to strengthen 
governance and deepen its commodities portfolio, particularly in sectors crucial
to the global energy transition.

The acquisition, valued at A$320 million, is expected to have a positive impact 
on CIMIC’s credit ratings and will allow the company to fully consolidate Thiess
into its financial accounts. “Increasing our ownership of Thiess strengthens CIMIC’s
business profile as we expand our commodities portfolio to include metals and minerals
critical to the world’s shift to zero emissions and develop services that enable
sustainable mining,” said Juan Santamaria, CIMIC Group Executive Chairman.

Thiess, renowned for its diversified mining services, boasts more than 15,000 employees
and operates across over 60 projects in regions including Australia, Asia, and the
Americas. The company, which reported a revenue of A$5.9 billion in 2023, has been
instrumental in providing sustainable solutions in open cut and underground mining,
asset management, and more.

The transaction follows CIMIC’s initial sale of a 50% stake in Thiess to Elliott
in 2020, which included a put option back to CIMIC exercisable between January 2024
and December 2026. With the latest development, the remaining put option for the
40% stake will be exercisable between April 2025 and December 2026.

CIMIC’s expanded influence over Thiess is part of its broader mission to generate
sustainable returns through innovative, competitive solutions for clients while 
ensuring safe, fulfilling careers for its employees. The group is known for its 
comprehensive capabilities spanning construction, mining, services, and public-private
partnerships, supported by a rich history dating back to 1899.

CIMIC’s shares are listed on the ASX and are traded under the stock code ‘CIM’. 
The ASX home branch is Sydney, Australia. Subsidiaries, CIMIC Finance (USA) Pty 
Limited and CIMIC Finance Limited, have notes on issue which are listed on the Singapore
Exchange.

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