News: Downer sells CPG Asia for $147M

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Shares in Downer EDI Limited (ASX:DOW) rose after the company yesterday said it had inked a deal to sell its architectural and design business CPG Asia for $147 million.



CPG Asia has been sold to China Architecture Design and Research Group, while Downer will continue to hold onto CPG Australia and CPG New Zealand.



The proceeds of the sale will be put to reducing Downer’s debt and strengthening its balance sheet but will have a neutral impact on the company’s fiscal 2012 guidance.



Downer expects to deliver EBITDA of about $340 million and a net profit of $180 million in the current financial year.



Shares in Downer closed 4.55 per cent higher yesterday at $3.22.



In the 2011 financial year Downer EDI booked a net loss of $27.7 million.