Ontario Teachers' Pension Plan and Leighton announced on June 28th the closure of the acquisition of approximately 70% of three Australian telecommunications companies from Leighton Holdings Limited.

The acquisition of Nextgen Networks, Metronode and Infoplex values 100% of these businesses at A$885 million. Nextgen manages high-speed, carrier-grade fibre network services; Metronode provides data centre and related value-added services; and Infoplex provides cloud and ICT services.

The businesses have been brought together under a new ownership structure and have been rebranded as the Nextgen Group. Leighton, based in Sydney, will retain an approximately 30% ownership share in the Nextgen Group, which will remain headquartered in Australia with existing management remaining in place.

Chief Executive Officer Mr Hamish Tyrwhitt said:

"This transaction is compelling because it recycles capital through the sale of non-core assets and helps to reduce our debt. Through our 30% ownership share, the transaction also provides access to the upside value that will be created by the new ownership structure with Teachers' and ensures we have a valuable strategic partner for the future."

Leighton highlighted the following about the transaction:

• Leighton's post-tax proceeds from the sale will be approximately $500 million
• Leighton's gearing will be reduced by more than 10%
• On an annualized basis (based on CY12), the sale will reduce Leighton's revenue by approximately $260 million and EBITDA by approximately $120 million