Downer raises cash as it weighs mining divestment

The institutional entitlement offer, which was priced at A$3.75 a share, was strongly supported by shareholders, with a take-up of around 97% by eligible institutional shareholders, the company said on Wednesday.

The retail component of the entitlement offer, which is expected to raise a further A$61-million, will open on July 23.

Funds raised will support Downer’s acquisition of integrated facility services company Spotless and continued investment in Downer’s core businesses.

The ASX-listed company this week also announced that it was again exploring the potential sale of its mining portfolio, either in parts or as a whole, in response to recent enquiries from a number of interested parties.

The company in March this year suspended a review of its mining business on the back of market volatility brought on by the Covid-19 pandemic. The decision came amid reports from fellow-listed Perenti, which had confirmed it was considering a potential acquisition of the mining services division for up to A$700-million.