In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the shortened week on a positive note. At the time of writing, the benchmark index is up 0.6% to 6,680.9 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

Mesoblast limited (ASX: MSB)

The Mesoblast share price is down almost 1% to $2.34. This is despite there being no news out of the biotech company today. However, its shares have been extremely volatile recently after revealing disappointing results from two key studies.

Monash IVF Group Ltd (ASX: MVF)

The Monash IVF share price has tumbled 4% lower to 76 cents. Investors have been selling the fertility treatment company’s shares after it revealed that proceedings have been filed against it in the Supreme Court of Victoria. These proceedings are in relation to the company’s non-invasive preimplantation genetic screening technology. The claim does not specify an amount of damages sought.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price has fallen almost 3% to $15.94. Investors have been selling the investment platform provider’s shares despite there being no news out of it. However, with its shares up over 100% since the start of the year, this decline could be due to profit taking from some investors.

Reece Ltd (ASX: REH)

The Reece share price is down 1.5% to $14.85. Once again, this is despite there being no news out of the plumbing parts company today. Though, prior to today the company’s shares were up strongly over the space of the month. This was driven partly by the company’s inclusion in the ASX 200 index at the quarterly rebalance. Reece joined the illustrious index on Monday.

More reading

• ASX 200 up 0.5%: BHP Samarco update, A2 Milk’s acquisition, Credit Corp rockets
• Why a2 Milk, Air New Zealand, Mesoblast, & Recce shares are storming higher
• 7 top ASX biomedical shares in 2020
• Why AGL, Mesoblast, WiseTech, & Woodside are dropping lower
• Why Elixinol Global, Flight Centre, Mesoblast, & WiseTech shares are dropping lower

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Netwealth. 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.

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The Resonance Health Limited (ASX: RHT) share price is soaring today after the company announced an agreement involving its flagship artificial intelligence (AI) device.

The Resonance Health share price has surged up 9.3% to trade at 23.5 cents at the time of writing.

What’s the deal?

In today’s release, Resonance Health advised that its HepaFat-AI device, which assesses fatty-liver using AI, was being incorporated into its Blackford Analysis Agreement.

The news comes as HepaFat-AI recently received regulatory clearance from the US food and drug administration (FDA) allowing Resonance to commercially sell its flagship product in the US.

Blackford delivers platforms and services for the use of medical imaging applications and AI – a perfect match for Resonance Health. As such, the agreement enables Blackford’s customers to access HepaFat-AI and other Resonance Health products.

What is HepaFat-AI?

The company describes HepaFat-AI as a fully automated AI assessment device “that measures the volumetric liver fat fraction, proton density fat fraction and steatosis grade in individuals with confirmed or suspected fatty liver disease”.

When interpreted by a trained physician, the HepaFat-AI results can be used to monitor liver fat content in patients undergoing weight loss management. In addition, it can aid in the assessment and screening of living donors for liver transplant.

About the Resonance Health share price?

Resonance Health is developing non-invasive medical imaging software. Its products are used by clinicians to diagnose and manage human diseases, and by pharmaceutical companies in their clinical trials.

Despite FDA clearance earlier this month that sent its shares flying 80%, the Resonance Health share price is trading 8% lower for the year. Investors may be disappointed with this return as the S&P/ASX 200 Health Care Index (ASX: XHJ) has returned 2.7% over the same period.

More reading

• Why the Resonance Health (ASX:RHT) share price is shooting 39% higher today
• Why Afterpay, Creso Pharma, Healius, & Resonance Health shares are storming higher

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Resonance Health Ltd. 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.

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to finish the week strongly. The benchmark index is up 0.5% to 6,675.6 points.

Here’s what is happening on the market today:

BHP resumes operations at Samarco.

The BHP Group Ltd (ASX: BHP) share price is pushing higher on Thursday after announcing that its Samarco operation has resumed operations after just over five years in suspension. According to the release, Samarco has now met the licensing requirements to restart its operations at the Germano complex in Minas Gerais and its Ubu complex in Espírito Santo, Brazil. As a result, the mining giant has commenced iron ore pellet production.

A2 Milk acquisition.

The A2 Milk Company Ltd (ASX: A2M) share price on the rise today after it confirmed that it has entered into a binding agreement relating to the acquisition of a 75% interest in Mataura Valley Milk (MVM). According to the release, the company will be paying a total consideration of NZ$268.5 million for the 75% stake in MVM. This is based on an enterprise value of circa NZ$385 million. MVM is a dairy nutrition business that is located in Southland, New Zealand.

Credit Corp rockets.

The Credit Corp Group Limited (ASX: CCP) share price is surging higher today after it announced that it has entered into a binding agreement to acquire the Australian Purchased Debt Ledger (PDL) book of Collection House Group Limited (ASX: CLH). Credit Corp has agreed to pay a total consideration of approximately $160 million plus the provision of a short-term loan of $15 million which is expected to be fully repaid within 9 months.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the Credit Corp share price by some distance. The debt collector’s shares are up 19% at lunch. The worst performer has been the Netwealth Group Ltd (ASX: NWL) share price with a 3% decline on no news.

More reading

• Why the Credit Corp (ASX:CCP) share price is surging 19% higher today
• Why AVZ Minerals, BrainChip, BSA, & Credit Corp shares are storming higher
• 10 incredible quotes that sum up investing in 2020
• Why the Woodside (ASX:WPL) share price is edging higher today
• Iron ore prices poised to hit US$180 next month: Westpac

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Netwealth. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Beach Energy Ltd (ASX: BPT) share price is up slightly in morning trade, after the company announced yesterday that its joint venture with Mitsui & Co. has made a final investment decision (FID) for the Waitsia Gas Project stage 2 development in Western Australia.

This decision reportedly comes after two years of the Beach Energy and Mitsui & Co. teams working to deliver this outcome.

At the time of writing, Beach Energy share price is up 1.75% to $1.86 per share.

What are the details of the decision? 

The Waitsia gas field is ranked as one of the top 5 largest onshore gas fields ever discovered in Australia. The proposed new production facility in stage 2 will lift output to 250 terajoules of natural gas each day.

The second stage of the project has an expected cost of $700 million to $800 million. Beach Energy’s contribution will be $350 million to $400 million net. Funding for the contribution will be derived from the company’s existing cash flows and facilities.

Full funding is anticipated to be delivered in the third quarter of 2021, pending regulatory approvals and commercial conditions.

If all goes to plan, Beach will commence production of the stage 2 development in the second half of 2023.

All a part of the plan 

Beach Energy managing director Matt Kay revealed that the approval of this project is core to the company’s 5-year growth strategy. Annual production of more than 37 MMboe (million barrels of oil equivalent) is being targeted by 2025.

Mr. Matt Kay spoke to the value this project could bring to shareholders:

We believe the project offers material value to Beach’s shareholders and, through the agreement to export through the North West Shelf facilities, makes Beach an LNG player for the first time in the Company’s 60-year history.

This development comes after the Western Australia premier, Mark McGowan, delivered an exemption to the state’s strict gas reservation policy for the onshore gas project.

Next steps?

Beach Energy isn’t the only company making progress on expansion plans. Its bigger brother Santos Ltd (ASX: STO) announced back in November that it was pursuing FID for the next phase of its Narrabri Gas Project.

It seems that these Aussie energy stocks aren’t turning off the gas anytime soon. The next step for Beach will be to get all the regulatory checkboxes ticked, such as approval from the state’s Environmental Protection Authority, before any works are started.

More reading

• Why the Woodside (ASX:WPL) share price is edging higher today
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Mitchell Lawler 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.

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The Beach Energy Ltd (ASX: BPT) share price is up slightly in morning trade, after the company announced yesterday that its joint venture with Mitsui & Co. has made a final investment decision (FID) for the Waitsia Gas Project stage 2 development in Western Australia.

This decision reportedly comes after two years of the Beach Energy and Mitsui & Co. teams working to deliver this outcome.

At the time of writing, Beach Energy share price is up 1.75% to $1.86 per share.

What are the details of the decision? 

The Waitsia gas field is ranked as one of the top 5 largest onshore gas fields ever discovered in Australia. The proposed new production facility in stage 2 will lift output to 250 terajoules of natural gas each day.

The second stage of the project has an expected cost of $700 million to $800 million. Beach Energy’s contribution will be $350 million to $400 million net. Funding for the contribution will be derived from the company’s existing cash flows and facilities.

Full funding is anticipated to be delivered in the third quarter of 2021, pending regulatory approvals and commercial conditions.

If all goes to plan, Beach will commence production of the stage 2 development in the second half of 2023.

All a part of the plan 

Beach Energy managing director Matt Kay revealed that the approval of this project is core to the company’s 5-year growth strategy. Annual production of more than 37 MMboe (million barrels of oil equivalent) is being targeted by 2025.

Mr. Matt Kay spoke to the value this project could bring to shareholders:

We believe the project offers material value to Beach’s shareholders and, through the agreement to export through the North West Shelf facilities, makes Beach an LNG player for the first time in the Company’s 60-year history.

This development comes after the Western Australia premier, Mark McGowan, delivered an exemption to the state’s strict gas reservation policy for the onshore gas project.

Next steps?

Beach Energy isn’t the only company making progress on expansion plans. Its bigger brother Santos Ltd (ASX: STO) announced back in November that it was pursuing FID for the next phase of its Narrabri Gas Project.

It seems that these Aussie energy stocks aren’t turning off the gas anytime soon. The next step for Beach will be to get all the regulatory checkboxes ticked, such as approval from the state’s Environmental Protection Authority, before any works are started.

More reading

• Why the Woodside (ASX:WPL) share price is edging higher today
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Mitchell Lawler 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.

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The Primewest Group Ltd (ASX: PWG) share price is slipping today on news the property manager has added two new assets to its portfolio. At the time of writing, the Primewest share price is trading down 1.6% at $1.23. 

It has been a volatile year for the real estate investment trust (REIT) which has suffered as a result of the coronavirus pandemic. However, the Primewest share price has since rebounded and is trading 10% higher for the year, outperforming the S&P/ASX 200 Real Estate Index (ASX: XRE).

What’s the deal today?

Primewest announced it has added two regional shopping centres to its portfolio with total assets of $92 million. The company has acquired the asset management rights for Chester Pass Mall in regional Western Australia, and Pialba Place, a sub regional shopping centre in Hervey Bay, north of Brisbane.

Primewest said Pialba Place had a weighted average lease expiry of 5.31 years, while Chester Mall boasted 7.9 years. This metric represents the average time when all leases expire, and is used by property managers as a measure for expected future income streams.

In addition, the company said its new assets had the security of blue chip tenants including Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW) and Bunnings, owned by Wesfarmers Ltd (ASX: WES).

What did management say?

Commenting on the deal, Primewest chairman John Bond said:

Securing another $92 million in assets under management in a single transaction is a great outcome for Primewest which already has an extensive network of retail assets in both Queensland and WA.

Both assets have been enhanced recently with the opening of a new Bunnings Warehouse at Chester Pass Mall earlier this month and ongoing improvements and leasing activity at Pialba Place. There is significant further development and leasing upside in both assets which will delivered in the short to medium term.

What now for the Primewest share price

Primewest has more than $4.9 billion worth of assets under management across all states of Australia and the west coast of the United States. Established in 1995, it aims to add value in a counter cyclical manner, operating in the agricultural, retail, industrial, commercial and residential areas.

The Primewest share price has recovered strongly since its March lows, rising an impressive 79% in the period.

More reading

• Why the Credit Corp (ASX:CCP) share price is surging 19% higher today
• Why AVZ Minerals, BrainChip, BSA, & Credit Corp shares are storming higher
• 10 incredible quotes that sum up investing in 2020
• Why the CIMIC (ASX:CIM) share price is pushing higher
• Why the Woodside (ASX:WPL) share price is edging higher today

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Credit Corp Group Limited (ASX: CCP) share price is surging higher today. This comes after the company announced an acquisition of a ledger book and an increase of its FY21 guidance.

At the time of writing, the Credit Corp share price is up 19% to $29.70.

What’s driving the Credit Corp share price higher?

According to its release, Credit Corp advised that it will acquire the Australian purchased debt ledger (PDL) book of Collection House Limited (ASX: CLH).

Collection House is a credit management agency that specialises in commercial debt recovery and outsourced credit control.

The book value of the transaction is estimated to be around $160 million. Credit Corp, however, will provide Collection House with an additional short-term loan of $15 million. The loan is due to be repaid back within 9 months and is secured against Collection House’s tax receivables.

The total amount of the deal is subject to minor adjustments including costs associated with the transaction. Credit Corp therefore estimates it will have a net expense of $150 million from the acquisition. This will be funded by the company tapping into its existing cash reserves, without the need to draw down on loan facilities.

The transaction is expected to be completed by the end of the current calendar year.

Under the terms of the agreement, Collection House is able to receive a portion of the collection funds that Credit Corp recovers. This is provided that Credit Corp achieves above the level required to have a return on its investment. Pleasingly, the book that will be acquired includes ongoing payment arrangements to the value of almost $200 million.

Words from the CEO

Commenting on the transaction, Credit Corp CEO Mr. Thomas Beregi said:

Acquisition of Collection House’s Australian book will be the largest single PDL purchase in Credit Corp’s history.

Even after this acquisition, Credit Corp will retain almost $400 million in available cash and funding lines to deploy as and when suitable investment opportunities arise across all of its segments.

Revised guidance

With the deal due to be wrapped in the coming days, Credit Corp revised its guidance for 2021. The company is forecasting its current financial year earnings to grow by $10 million in net profit after tax. This brings the adjusted net profit after tax between $70 million to $85 million, which is an increase on the previously projected net profit after tax of $60 million to $75 million.

Credit Corp said it will update shareholders on its operational performance at its half-year results release on 2 February 2021.

At the time of writing, the Credit Corp share price is up almost 20% in morning trade, giving it a current market cap of $1.67 billion.

More reading

• Why AVZ Minerals, BrainChip, BSA, & Credit Corp shares are storming higher

Motley Fool contributor Aaron Teboneras 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.

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The S&P/ASX 200 Index (ASX: XJO) is on course to end the shortened week on a positive note. At the time of writing, the benchmark index is up 0.5% to 6,676.7 points.

Four shares that are climbing more than most today are listed below. Here’s why they are storming higher:

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price has jumped over 17% to 11.5 cents. This follows the announcement of an offtake agreement by the lithium miner this morning. AVZ has signed a strategic, long-term offtake partnership with GFL International, a subsidiary of China’s largest lithium compounds producer, Ganfeng Lithium. GFL has signed on to take 30% of its Manono Project’s initial saleable yearly tonnage.

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price has rocketed 29% higher to 42 cents. Investors have been buying the artificial intelligence company’s shares after the release of two announcements. The first revealed that NASA has placed an order for its Akida Early Access Evaluation Kit. Whereas the second announcement reveals that it signed an intellectual property license agreement with Renesas Electronics America.

BSA Limited (ASX: BSA)

The BSA share price is up 3% to 34 cents. The catalyst for this was news that the technical services company has entered an agreement to provide Telstra Corporation Ltd (ASX: TLS) with field operations services in partnership with Kordia Solutions. The agreement has an initial term of three years and is projected to generate around $25 million in revenue in the first year of the contract.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price has surged 19% higher to $29.63. This follows the release of an announcement which reveals that it has entered into a binding agreement to acquire the Australian Purchased Debt Ledger (PDL) book of Collection House Group Limited (ASX: CLH). Credit Corp has agreed to pay a total consideration of approximately $160 million plus the provision of a short-term loan of $15 million, which is expected to be fully repaid within 9 months.

More reading

• BrainChip (ASX:BRN) share price on watch following major announcements
• Why the BSA (ASX:BSA) share price is on watch today
• Why Brainchip Holdings (ASX:BRN) shares are in a trading halt
• Why the BSA (ASX:BSA) share price has surged 7% higher today
• Why the BrainChip (ASX:BRN) share price is charging higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Investing in 2020 was unlike anything we’ve ever seen.

If we could sum up the year in just 10 quotes to get a sense of what an absolute rollercoaster it was, I think these would do the job well:

1.“What would it be like if your biggest holding lost half of its value in just a couple of days?”

– David Gardner, Motley Fool co-founder, 15 January 2020

This is the question asked by Motley Fool co-founder, co-chairman and Chief Rule Breaker David Gardner in January in an episode of the Motley Fool Rule Breaker podcast. The episode simulated that very scenario – a significant market crash. David Gardner and guest host Chris Hill discussed a number of big US listed companies as if they had suffered significant share price falls.

The timing seemed prophetic, however Gardner was careful to note at the start of the episode that “by no means are we predicting or thinking that the market is going to drop any time soon”.

2. “Hell is coming”

– Bill Ackman, Pershing Square Capital Management CEO, 18 March 2020

As the COVID-19 virus spread rapidly, share markets started plummeting. By March, even seasoned investors like Bill Ackman, CEO of Pershing Square Capital Management were fearing the worst. Ackman spoke live to CNBC in an emotional interview and issued a stark warning that “a depression era period” could be on its way. As he spoke on 18 March, the big S&P 500 index was plunging as much as -7%. Pershing Square went on to make more than US$2.5 billion in bets against markets.

3. “Australia is closing its borders to all non-citizens and non-residents”

– Prime Minister Scott Morrison, 19 March 2020

To slow the spread of coronavirus and to save lives, the doors to the boarder were slammed shut in March. Airlines were shuttered. Airports turned to ghost towns. The closure of borders around the world will be a defining event of 2020. We may never see it again in our lives.

4. “Tesla stock price is too high imo”

– Elon Musk, Telsa CEO, 2 May 2020

Tesla stock price is too high imo

— Elon Musk (@elonmusk) May 1, 2020

https://platform.twitter.com/widgets.js

As share markets started to roar back to life, the Tesla (NASDAQ:TSLA) share price went sky-ward. At the time of CEO Elon Musk’s tweet the Tesla share price sat at around US$140. Since then the Tesla share price has rocketed by more than 350%, to US$640 per share.

5. “When something like the current pandemic happens, it’s hard to factor that in. That’s why you never want to use borrowed money, at least in my view, into investments”

– Warren Buffett, Berkshire Hathaway CEO, 2 May 2020

At the same time as Musk’s tweet, iconic investor Warren Buffett offered some sage investing advice during Berkshire Hathaway’s virtual shareholder’s meeting.

 6. “The fundamental outlook may be positive on balance, but with listed security prices where they are, the odds aren’t in investors favor”

– Howard Marks, Oaktree Capital CEO, 18 June 2020

In his June memo ‘The Anatomy of a Rally‘, Oaktree Capital’s Howard Marks reiterated the thoughts of many of us as share markets bounced back. The S&P/ASX 200 Index (ASX: XJO) had gained around +32% from its March 23 low. Since then share markets have continued to rise merrily, proving Marks’ long held maximum that ‘You cannot predict. You can prepare’.

7. “Today is a great day for science and humanity”  

– Dr. Albert Bourla – Pfizer Chairman and CEO, 9 November 2020

The world cheered as Pfizer and BioNTech announced a vaccine candidate had proved more than 90% effective against the scourge of COVID-19. People can do incredible things when time and resources are brought to a focus.

8. “If you look at what’s transpiring in the current pandemic, similar to what we saw in the 2008 financial crisis, there’s this distinct shift away from credit to debit”

– Nick Molnar, Afterpay co-founder, 7 December 2020

The Afterpay Ltd (ASX: APT) share price has had one of the most incredible runs of the year as shoppers moved online. After falling as low as $8 per share in March the Afterpay share price rose over 1,100% to $114 per share in December.

9. “You can’t live a successful life without doing some difficult things that go wrong. That’s just the nature of the game”

– Charlie Munger, vice chairman of Berkshire Hathaway, 14 December 2020

If you made some investing mistakes in 2020 don’t beat yourself up, it was a testing year. As Charlie Munger noted in this webcast interview with California Institute of Technology getting things wrong and learning from it is part of investing.

10. “We are playing the only game that counts; the long-game”

– David Gardner, 15 Jan 2020

To come full circle on 2020 I want to finish with another quote from David Gardner from his January podcast. In so many ways 2020 was a complete shocker. But more than anything it showed why it is so important to keep a long-term view of investing. Markets regularly rise and fall without warning. Having the fortitude to ride out the drops and letting returns compound over many years will likely see you come out a winner.

More reading

• Iron ore prices poised to hit US$180 next month: Westpac
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 ends 0.7% higher
• 2 dirt cheap ASX shares to buy in 2021
• What a 20x return on Afterpay (ASX:APT) shares taught me

Regan Pearson has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The CIMIC Group Ltd (ASX: CIM) share price is edging higher on Thursday following the release of a positive announcement.

At the time of writing, the engineering company’s shares are up 0.25% to $25.15.

What did CIMIC announce?

This morning CIMIC provided an update on the sale of 50% of its Thiess business to funds advised by Elliott Advisors.

Elliott is one of the oldest fund managers of its kind under continuous operation and manages more than US$40 billion in assets. This includes equity positions in private and listed companies in Australia and globally.

Thiess delivers open cut and underground mining in Australia, Asia, Africa and the Americas. It provides services to 25 projects across a range of commodities and has a diverse fleet of plant and equipment of more than 2,200 assets, a team of around 14,000 employees, and generates annual revenues in excess of A$4.1 billion.

According to the release, the company has signed all relevant material documentation including financing agreements, for the sale of the world’s largest mining services provider. This encompasses the satisfaction of a number of conditions precedent, including the required regulatory approvals.

Management advised that the transaction completion, including receipt of cash proceeds, is expected to occur prior to the end of 2020.

How much will CIMIC receive for Theiss?

The company confirmed that the price it has agreed for 50% of the equity interest in Thiess implies an enterprise valuation of approximately A$4.3 billion (based on 100% of Thiess).

The transaction is expected to generate a pre-tax gain for CIMIC of around A$2.2 billion, and a post-tax gain of around A$1.4 billion. This remains subject to certain adjustments

CIMIC’s Executive Chairman, Marcelino Fernández Verdes, previously commented: “The sale agreement reflects Thiess’ ongoing strategic importance as a core activity for CIMIC. It capitalises on the robust outlook for the mining sector and, together with Elliott, we will pursue market opportunities in line with Thiess’ growth and diversification strategy.”

More reading

• The Cimic (ASX:CIM) share price is down 2% lower today. Here’s why
• Cimic (ASX:CIM) share price falls despite positive update
• Why the Cimic Group (ASX:CIM) share price is on watch today
• Cimic (ASX:CIM) share price flat despite another contract win
• ASX 200 goes up on Friday

Motley Fool contributor James Mickleboro 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.

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