Lend Lease is selling its 23% interest for $102 million, half of which was paid on Friday, plus repayment of a $10.2-million shareholder loan to IBM GSA. The other half of the $102 million is due in 12 months.
IBM Australia also acquired Telstra's interest in IBM Global Services Australia Ltd., paying the Australia-based telecommunications company $98.7 million for its 22.6% stake.
The combined $210-million acquisition will will give IBM full ownership of its Australian IT and consulting services business while Lend Lease receives a premium price for what it considered a non-core investment. Lend Lease says the sale price compares to a book value of its investment in IBM GSA of approximately $27.4 million.
Given the timing of the sale, Lend Lease says it will report a significantly lower level of earnings from the IBM GSA investment in the 2004 financial year than its recent operating earnings guidance announcement.
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