Whilst the parties have satisfied the majority of the Conditions Precedent, including Foreign Investment Review Board (FIRB) approval, there remains a number of customer consents outstanding at the date of completion. These contracts will remain with Downer until the consents are received.
As announced previously, the sale price represents an enterprise value of $212 million with the majority of the sale proceeds received today. Downer has agreed to defer $20 million of the proceeds until the remaining customer consents are received and the contracts novated.
The Chief Executive Officer of Downer, Peter Tompkins, said completion of the Australian Transport Projects sale was an important milestone in the company’s portfolio simplification strategy.
“Going forward in the transport sector, Downer will concentrate on enhancing its market leading positions in rollingstock, road maintenance and New Zealand infrastructure delivery,” Mr Tompkins said.
Image of recently completed Warrnambool Line Upgrade project.