Lendlease (ASX:LLC) share price edges higher on divestment news

Lendlease is on track for a massive pay day.
The post Lendlease (ASX:LLC) share price edges higher on divestment news appeared first on The Motley Fool Australia. –

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.

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.

The post Lendlease (ASX:LLC) share price edges higher on divestment news appeared first on The Motley Fool Australia.

Should you invest $1,000 in Lendlease right now?

Before you consider Lendlease, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lendlease wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX 200 midday update: Kogan FY 2021 update, Altium sinks

5 things to watch on the ASX 200 on Friday

Why Lendlease, Marley Spoon, Reece, & Woolworths shares are sinking

ASX 200 down 0.3%: SEEK record high, IGO jumps, Lendlease downgrade

Why the Lendlease (ASX:LLC) share price is tumbling today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!