Global property advisory DTZ is to be demerged into a stand-alone company listed on the Australian Securities Exchange (ASX), its owner UGL has confirmed.
Global property advisory DTZ is to be demerged into a stand-alone company listed on the Australian Securities Exchange (ASX), its owner UGL has confirmed.
UGL, a Sydney-listed global diversified services company, acquired London-based DTZ in December 2011 for €90 mln. DTZ is now headquartered in Los Angeles in the US.
DTZ has performed well since the merger, growing to account for about 50% of the group's earnings. Meanwhile UGL's core businesses - engineering, construction and maintenance services - have plunged.
UGL announced its intention on Monday to pursue a demerger to create two standalone ASX-listed companies. One of the companies will be focused on DTZ and the other on UGL's core activities in Australia, New Zealand and Asia.
UGL employs 53,000 people across 52 countries.
The decision to demerge follows the completion of the corporate structure review announced by UGL on 26 March 2013.
UGL Chairman, Trevor Rowe said: 'We believe a demerger will enhance shareholder value over the short and long term and prove beneficial to our clients and our people.'
