ASX-listed Cimic Group Ltd (ASX: CIM) (CIM.AX) shares were trading 3% higher today as the broader market, or S&P/ASX 200 (INDEXASX: XJO), rebounded from its lows on Monday.
Cimic Group was formerly called Leighton Holdings. The company changed its name shortly after some bribery scandals emerged in the news and it was acquired by its majority shareholder, Spainish firm Grupo ACS.
On a more positive note, Cimic is today a major international construction and mining contractor with brands like UGL, CPB Contractors, Thiess, Broad and Sedgman under its banner.
Why are shares rising?
This morning, Cimic revealed its subsidiaries UGL and CPB Contractors have been selected by Taswater as the preferred contractor to deliver water and wastewater infrastructure in Tasmania. The programs are expected to offer Cimic more than $600 million in revenue over four years.
The works will include water and waste treatment plants, networks, dams and storage, as well as general renewal works.
“The unique combination of UGL’s expertise in the water sector and CPB Contractors’ experience in major project design and construction projects position us strongly to partner with Taswater to deliver world-class infrastructure to the communities of Tasmania,” Cimic’s CEO Michael Wright said.
UGL, which was listed on the ASX until it was acquired by Cimic in 2016, and CPB Contractors currently work together on water treatment facilities in Victoria, along with other projects overseas.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).