SYDNEY: Leighton Holdings, Australia's biggest builder, agreed to pay 870 million Australian dollars, or $712 million, for a stake in Al Habtoor Engineering of Dubai, increasing its role in one of the world's fastest-growing real estate markets.
Leighton's shares, which have more than doubled this year, rose by the most since February after the Sydney-based company said that it will use cash and debt to buy 45 percent of Al Habtoor Engineering, raising revenue by 800 million dollars in fiscal 2008.
Leighton's chief executive, Wal King, is expanding in the Gulf region to take advantage of growth in demand for the company's construction and engineering services. The United Arab Emirates is the site of some $220 billion in construction projects, more than any other Gulf state, as the country uses record oil revenue to diversify its economy by building hotels, airports and factories.
"It's very good business in Dubai for construction companies like Leighton," said Angus Gluskie, who helps manage the equivalent of about $380 million, including Leighton shares, at White Funds Management in Sydney. "Customers there place a high priority on getting the job done quickly, so a company like Leighton, with a strong track record of delivery, can expect to get higher margins in Dubai." Full Story - Synergen Consulting International
Leighton's shares, which have more than doubled this year, rose by the most since February after the Sydney-based company said that it will use cash and debt to buy 45 percent of Al Habtoor Engineering, raising revenue by 800 million dollars in fiscal 2008.
Leighton's chief executive, Wal King, is expanding in the Gulf region to take advantage of growth in demand for the company's construction and engineering services. The United Arab Emirates is the site of some $220 billion in construction projects, more than any other Gulf state, as the country uses record oil revenue to diversify its economy by building hotels, airports and factories.
"It's very good business in Dubai for construction companies like Leighton," said Angus Gluskie, who helps manage the equivalent of about $380 million, including Leighton shares, at White Funds Management in Sydney. "Customers there place a high priority on getting the job done quickly, so a company like Leighton, with a strong track record of delivery, can expect to get higher margins in Dubai." Full Story - Synergen Consulting International
