Macmahon profits just $2 million on sale to Leightons
MINING contractor Macmahon Holdings expects to make just $2 million on the sale of its construction business to Leighton Holdings due to $12 million in redundancy costs.
Macmahon announced earlier in December it would sell its construction activities to become a dedicated full service mining contractor.
After recent adjustments for new work and projects, Macmahon said its deal with Leighton would be worth $20 million, and produce proceeds of $14 million after transferring employee liabilities to Leighton.
But Macmahon expects to incur $12 million in restructure and redundancy costs associated with staff that will not be transferred to Leighton.
The company has not said how many employees will lose their jobs.
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