ENGINEERING and property services provider UGL is reviewing its corporate structure now that the property business generates nearly 50 per cent of group earnings.
"The review will assess the optimal corporate structure under which UGL should operate to deliver the best outcomes for all stakeholders," UGL chairman Trevor Rowe said in a statement on Tuesday.
The alternatives to be considered include maintaining the current corporate structure, and a demerger or separation of the company.
Shares in UGL were 75 cents, or 7.95 per cent, higher at $10.18 at 1127 AEDT on Tuesday, in the wake of the announcement.
The review will also consider UGL's merger and acquisition strategy, and the tax, debt and management issues associated with a separation.
UGL's engineering businesses employ 8,000 people and generate annual revenue of more than $2.5 billion.
The property services business operates in 52 countries, employs 47,000 people and generates annual revenue of $2 billion.
"Given the substantial scale both businesses have now reached, it is the right time to review UGL's corporate structure to fully capitalise on the strong growth opportunities across the engineering and property services sectors," UGL chief executive Richard Leupen said.
UGL will provide an update on the review by the announcement of the group's full-year financial results in August.
The property business has grown since UGL acquired KFPW in 2002.
UGL said the acquisition of the trading operations of DTZ Holdings in December 2011 had transformed the group's property services businesses into a global operation.
UGL's property services businesses are now under a single, global brand: DTZ.
DTZ is headquartered in Los Angeles in the United States.
Mr Rowe said Mr Leupen would would deliver the review and carry out its recommendations.
If the corporate structure is to change, Mr Leupen will continue as chief executive for a short time beyond the end date of his contract in March 2014 to complete the work.
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