SYDNEY (Reuters) – Australian development agency LendLease Group has appointed Morgan Stanley and native adviser Gresham to run the sale of its underperforming engineering and providers enterprise (E&S), two individuals conscious of the matter advised Reuters on Thursday.
The funding banks have despatched time period sheets to a number or potential consumers, added one of many sources who spoke on situation of anonymity as a result of they weren’t approved to converse to the media.
Representatives for Lendlease and Morgan Stanley declined to remark. Gresham didn’t return requests for remark.
The Australian developer needs to divest the E&S unit, which Bank of America Merrill Lynch analysts have stated might fetch about A$500 million ($355.15 million) in money proceeds, and give attention to its different three models – development, improvement and property investments.
In a presentation on Thursday, Lendlease stated it anticipated to take a restructuring hit from the sale of between A$450 million to A$550 million.
LendLease final month reported a 96.three % drop in first-half revenue, dragged down by the underperformance of the E&S companies, which was hit by delays and low productiveness in a tunneling venture in Sydney.
Reporting by Paulina Duran; Editing by Kim Coghill and Rashmi Aich