OVER THE FENCE:.. DOWNER: In November Downer agreed to spend...

OVER THE FENCE:..

DOWNER:
In November Downer agreed to spend more than $43 million buying the other 50% of its J/V road maintenance company DM Roads
https://www.dmroads.com.au/
It is  buying  the partner holding company. KHSA from troubled UK company, Kier.
Not a whisper of this deal seems to have been picked up bt Australian press,  nor officially announced by Downer .
But, as a deal it seems to be a good one .
According to my conversion of figures from the story below,  in June 2018 :
KHSA profits were $12,363,820.
KHSA assets were valued at $92.03 million


NOVEMBER 19, 2018
https://www.roadtraffic-technology.com/news/kier-group-sell-khsa-downer/
Kier Group to sell shares in KHSA to Downer
“Kier Group has agreed to sell its shares in Australian road maintenance division KHSA to Downer Group in a deal worth around A$43.7m (£24m).

The transaction will be carried out in cash and is expected to be completed early next year subject to an escrow arrangement.

A Kier Group statement said: “KHSA, which was acquired as part of the Mouchel group of companies in 2015, provides road asset management and maintenance services in Australia in a joint venture with Downer.

“For the financial year ended 30 June 2018, KHSA reported a profit before tax of £7m. The gross assets of the company were £52.1m at 30 June 2018.”

“KHSA provides road asset management and maintenance services in Australia in a joint venture with Downer.”
UK-based infrastructure group Kier is aiming for a profit of around £15m from the deal, subject to post-completion adjustments.

The company will use the proceeds from the sale to further reduce its net debt and to focus more on its core market areas.

The divestment is part of the Future Proofing Kier (FPK) programme, which was launched by the firm in July with the aim of streamlining the business while generating more cash.

Kier currently employs around 21,000 people across its sites in the UK, Australia, and the Middle East.

Downer Group is mainly engaged in the design and development of infrastructure and facilities in Australia and New Zealand.


________


As a reminder what was announced , on November 14 , here in Australia was  Downer wanted to sell its mining division :
... “Downer announced a $77 million pretax write-down on goodwill in its mining operations in early February. The company has lost two key mining contracts in recent years - its Christmas Creek iron ore contract with Fortescue Metals Group in Western Australia, which went in-house, and its Boggabri coal mine contract with Japan's Idemitsu group in NSW, which went to BGC Contracting.
The Christmas Creek contract previously contributed about $400 million annually to Downer's group revenues, and accounted for about 20 per cent of its mining work.
https://www.copyright link/street-t...o-sell-mining-unit-hires-bank-20181114-h17vb4