UGL confirms $1.1 bln sale of property arm to TPG consortium
SYDNEY, June 16 (Reuters) - Australian engineering services company UGL Ltd confirmed the cash sale of its property arm to a consortium of TPG Capital Management, PAG Asia Capital and Ontario Teachers' Pension Plan for A$1.215 billion ($1.14 billion).
Sydney-based UGL put global real estate services company DTZ up for sale a year ago to cut debt as its main engineering services division faces declining revenues due to a slowdown in the Australian mining sector.
The vendor will net A$1 billion to A$1.05 billion after sale costs and is considering "a range of options for the efficient use of net proceeds", UGL said in a statement to the Australian Securities Exchange on Monday.
UGL shares fell in a flat overall market and were trading down 0.43 percent at A$6.91 at 0115 GMT. ($1 = 1.0639 Australian Dollars) (Reporting by Byron Kaye; Editing by Ryan Woo)
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