Feb 05, 2020

Perenti eyes Downer mining services division

Perenti eyes Downer mining services division

Perenti has confirmed it is considering buying Downer EDI’s mining services division.

“The process is ongoing and Perenti would only put forward an offer to acquire the business if it were to align with its strategy and deliver value for the company’s shareholders,” the company said.

It denied a report of a $700 million offer, saying the transaction value speculated in an Australian Financial Review article was ‘significantly above the level Perenti may consider offering’.

If a deal is made with Downer EDI, Perenti would consider a range of funding options, including an equity raising.

Formerly called Ausdrill, Perenti became Australia’s second biggest mining services company when it took over underground hard-rock mining contractor Barminco Holdings for $271.5 million in 2018.

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