SALE OF OPEN CUT MINING EAST

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    Downer EDI Limited (Downer) announced today it had entered into an agreement to sell its Open Cut Mining
    East business to an Australian subsidiary of PT Bukit Makmur Mandiri Utama (BUMA), a large Mining
    services provider in Indonesia.
    The transaction includes the transfer of the assets, liabilities (including employee entitlements), employees
    and contracts comprising the Open Cut Mining East business to BUMA.
    Downer will receive approximately $150 million in cash proceeds from the transaction, subject to completion
    adjustments. BUMA has paid Downer a deposit of $16 million with the remainder of the purchase price
    payable at completion.
    The Chief Executive Officer of Downer, Grant Fenn, said the sale of Open Cut Mining East is the final step in
    Downer’s divestment of its Mining portfolio of businesses. Together with the previously announced Mining
    and Laundries transactions, total proceeds from Downer’s divestment program amount to $778 million.
    “An important part of our Urban Services strategy was the exit from our capital-intensive Mining businesses,”
    Mr Fenn said. “The sale of Open Cut Mining East is the last step of this process and follows the divestments
    of Open Cut Mining West, Downer Blasting Services, Underground mining, Otraco, the Snowden consulting
    business and our share in the RTL Mining and Earthworks joint venture.”
    Completion of the transaction, which is subject to customary conditions (including novation of certain
    contracts), is expected to occur before the end of the 2021 calendar year.
    Authorised for release by Downer’s Chief Executive Officer, Grant Fenn.

    courtesy of Bell Direct
    ===================================================================

    DYOR

    i hold DOW

    gee i might have to research this again and double check this is going in the right direction

    ( while i am still in profit .. bought in @ $3.64 in March 2020 )

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