The Lendlease Group (ASX: LLC) share price is climbing during morning trade following the sale of its Services business.
At the time of writing, the international property and infrastructure company's shares are up 2% to $11.66.
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Lendlease moves ahead with sale
Investors are buying Lendlease shares after digesting the company's latest news to the ASX.
According to its release, Lendlease entered into an agreement with Service Stream Ltd (ASX: SSM) to offload its Services business.
Founded in 1996, Service Stream is Australia's leading provider of essential network services. This includes the design, construction, operation, and maintenance of fixed, wireless and broadband services for utility and telecommunications asset owners.
The deal, which is subject to conditions including client and third-party consents, is valued at $310 million. Should everything run smoothly, the transaction is expected to be completed before the end of this calendar year.
The full amount of the proceeds is due to be received on completion of the sale.
Lendlease global CEO Tony Lombardo commented:
The divestment of the Services business, along with other recent divestments including the sale of the Engineering business and the US Telecommunications and Energy businesses, aligns with the Group strategy to be more focused on the areas where our competitive edge is the strongest.
The divestments, combined with recently announced changes to the organisational structure, better position the Group to deliver on our $110 billion development pipeline, continue to deliver our construction backlog and grow our investments platform in a more focused and efficient way.
About the Lendlease share price
Despite pushing ahead today, Lendlease shares haven't been on a positive run for the year, down 10.8% year-to-date. The company's share price has mostly travelled in circles for the past 12 months, failing to make any gains.
Lendlease commands a market capitalisation of roughly $8 billion, making it the 69th largest company on the ASX. The group also has approximately 688 million shares on its books.
