Leighton JV settles with client

Habtoor Leighton reaches 'amicable' deal with Qatar client on payment owing.

Leighton Holdings' (LEI) Middle Eastern joint venture Habtoor Leighton Group has reached an "amicable agreement" about payments outstanding from a Qatar-based client.

Leighton said the agreement includes the return of all liquidated bonds which were called from May to July 2013 and agreement on contract values for completed and ongoing projects.

The client has paid approximately 40% of money outstanding on the signing of the agreement and will pay a further 20% over the next few weeks, Leighton said.

The sum owing will be repaid over the next 18 months after handover of the remaining projects to the client.

Leighton said the deal is materially in line with Habtoor Leighton Group's expected financial result for the projects and significantly reduces the risk exposure of the 45 per cent owned associate to Leighton.

In October, Leighton shares fell 10 per cent after media reports the company was aware of extensive bribery, corruption and cover-ups in its international divisions.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles