(Updates with chairman comment in paragraph 5 and details on reorganisation throughout)
May 27 (Reuters) - Lendlease Group (LLC) said on Monday it would recycle A$4.5 billion ($2.98 billion) of capital by exiting its overseas business, and undertake a A$500 million phased share buyback plan, in a bid to reorganise its structure and cut costs.
The Australian construction company aims to unlock the A$4.5 billion capital by walking away from its international construction business, and accelerating payments from its offshore development projects.
Shares of the company rose nearly 10% in early trade, set for their best day since April 2020, if gains hold. Lendlease's stock is the top gainer in the ASX200 benchmark index (xjo) .
The company aims to lower its cost base, with an annual target of A$125 million pre-tax savings, and also return capital to its shareholders via a A$500 million share buyback programme.
"We recognise that our security price performance and security holder returns have been poor as we have faced structural challenges and a prolonged market downturn," said Lendlease Chairman Michael Ullmer.
The company expects various impairments and charges in the range of A$1.15 billion to A$1.48 billion in fiscal 2024 on its pre-tax income, arising from writedowns of goodwill attached to its U.S. and UK construction businesses.
($1 = 1.5099 Australian dollars)
Add to My Watchlist
What is My Watchlist?
 (20min delay)
|
|||||
|
Last
$5.56 |
Change
0.030(0.54%) |
Mkt cap ! $3.837B | |||
| Open | High | Low | Value | Volume |
| $5.60 | $5.61 | $5.51 | $9.438M | 1.695M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 19707 | $5.55 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $5.56 | 1198 | 5 |
View Market Depth
| Last trade - 16.10pm 05/09/2025 (20 minute delay) ? |
| LLC (ASX) Chart |