Allens Arthur Robinson (Allens) has advised the world’s largest contract miner, Leighton Holdings Limited, and its wholly owned subsidiary, Leighton Contractors (together, Leighton), on the sale of its HWE Iron Ore entities and assets, which provide iron ore contract mining services to BHP Billiton in Western Australia.
The sale of Leighton’s Pilbara-based mining contracting businesses, comprising the mining equipment, people and related assets that service the Area C, Yandi and Orebody 23/25 operations, collectively account for about 70 per cent of BHP Billiton’s iron ore mining in WA, and represent about A$1.1 billion of annual revenue and A$1.4 billion worth of work in hand for Leighton.
The sale was achieved via a simultaneous signing and completion on 30 September, with a sale price, subject to working capital adjustments and final documentation, of about A$705 million.
Partner Andrew Finch, who led an Allens team that managed the matter’s electronic data room and negotiated large volumes of transaction documents, said that the sale recognises the creation of substantial value by Leighton, since its 2006 acquisition of HWE Iron Ore out of administration.
‘This transaction involved BHP “internalising” mining operations from Leighton,’ Mr Finch said.
‘A cooperative deal was highly desirable for both parties, because of the very large workforce moving to BHP as part of the sale, and having regard to the fact that BHP is Leighton’s largest contract mining customer.
‘We were delighted and privileged to work with the Leighton team to execute and complete this important transaction within a short timeframe.
‘The level and quality of cooperation by both parties and their advisory teams was exemplary.’
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