Leighton Plans A$757 Million Raising After Turning to Loss

Leighton Holdings Ltd., Australia’s biggest builder, will sell A$757 million ($800 million) of stock after forecasting a loss because of project cost overruns and charges against its venture with Dubai’s Al Habtoor Group.

The shares will be sold at A$22.50 apiece through a 1-for-9 entitlement offer, a 22 percent discount to the last traded price of A$28.94 on April 6, Sydney-based Leighton said in a statement today. Parent Hochtief AG, Germany’s largest listed builder, will take up its full entitlement in the sale.

The Australian company will take A$907 million in writebacks and impairments in the year ending June, leading to an annual loss of A$427 million, after forecasting net income of A$480 million two months ago. Chief Executive Officer David Stewart, who ended Wal King’s 23 years in charge when he took the role Jan. 1, flagged changes to the way Leighton bids for contracts after delays at the Brisbane Airport Link road and cost overruns at a desalination plant in Victoria state.