UGL says DTZ options still open
UGL has brushed off a claim that a sale of its global property services business DTZ is imminent.
A media report said yesterday that private equity giant TPG Capital was poised to buy DTZ for $1.2 billion.
The two parties were said to be in final negotiations over terms and conditions and a deal would be announced as early as today.
UGL, in a statement to the Australian Securities Exchange, said while it had received confidential and conditional proposals to acquire DTZ, no terms had been agreed and discussions were yet to reach a conclusion.
"UGL notes there is no guarantee this process will result in a binding offer for DTZ and all options are still being considered, including a demerger of DTZ," the statement said.
The stock closed up 54¢, or 8 per cent, to $7.10.
The company had made a similar response on May 19 to a stock exchange query over media speculation about a potential sale.
UGL acquired DTZ in 2011 for £78 million after it went into administration. The business maintains buildings and handles tenancies for private enterprises and governments in 52 countries.
In 2012-13, the property arm contributed $1.9 billion of the group's $4.2 billion revenue.
Chief executive Richard Leupen announced last August that UGL's engineering and property divisions would become separate listed entities.
The split was expected to be completed by the end of this year.
Mr Leupen added a potential trade sale of DTZ to the mix after attracting buyer interest.
A company presentation earlier this month said the strong third-party interested reflected the strength of DTZ's platform and the growth outlook for the property services sector globally.
The long-time chief executive postponed his scheduled departure from UGL this year to complete the separation of the two businesses.
