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Macmahon Holdings Limited (ASX:MAH) will exit the construction business after signing an MOU with Leighton Holdings Limited (ASX:LEI) to sell selected construction projects for about $16.3 million.
The deal comes amid significant write downs and its Chief Executive Ross Carroll, downgraded the group’s net profit.
The mining contractor has also announced an $80.7 million equity raising, in an effort to boost earnings.
MacMahon expects one-off costs to be about $10 million as a result of redundancy packages, restructuring and closure costs.
The Leighton transaction will allow Macmahon to focus on its core contracting mining business and is subject to shareholder approval.
Macmahon Holdings posted a net profit of $56 million in the 2012 financial year.
