Multiplex shares dive on news of UK sale

SYDNEY - Shares in Multiplex Group dived again this morning after it sold its stake in a British project linked to its troubled Wembley Stadium construction.

Multiplex today announced that along with its joint venture partners, affiliated with the Reuben Brothers, it was selling their 25 per cent interest in the White City shopping centre development in the United Kingdom for £65 million ($NZ170.6 million).

The stake has been purchased by shopping centre giant Westfield Group.

Multiplex shares plunged after the news, down 24 cents -- or more than six per cent -- to A$3.37 ($NZ3.63) at 1124 AEST (1324 NZT).

One analyst said investors were still jittery after Multiplex's shock news on Wembley Stadium in February, when it revealed it no longer expected to make a profit on the flagship project.

The analyst said that investors had viewed White City as a strategic investment.

Multiplex said in a statement it was selling its minority interest, equating to 12.5 per cent, so it could "concentrate on its significant development pipeline in the UK".

"Multiplex's preference is not to hold small minority interests in assets except in circumstances where it has a role as asset manager and fund manager," the group said.

Multiplex's shares are now at a new record low, down 45 per cent from their high of A$6.07 in February.

- AAP