MACA emerges as potential buyer for Downer business

Perth-based MACA reported that discussions with Downer were ongoing and it would only make a binding offer if it aligned with the company strategy and delivered value for shareholders.

MACA added that this position was in line with statements made at its annual general meeting last month, where it was stated that the company “(continued) to explore and pursue growth opportunities that (would) deliver value to shareholders on an ongoing basis”.

Downer also confirmed the discussions with MACA, stating: “There is no certainty that a sale will result from these discussions.”

Perenti Global was also in the line of potential buyers for Downer’s open cut mining business earlier this year before the latter put the sale process to a halt due to the COVID-19 pandemic.

According to the Australian Financial Review, Downer is seeking offers of around $700 million for its mining services arm.

Downer’s mining customers include BHP Mitsubishi Alliance (the Goonyella Riverside, Peak Downs and Blackwater mines in Queensland), Fortescue Metals Group (the Eliwana iron ore project in Western Australia), the Gold Fields-Gold Road Resources joint venture (the Gruyere gold project in Western Australia) and OZ Minerals (the Carrapateena copper-gold mine in South Australia).

The contractor also announced the sale of its blasting services, the Snowden consulting business and its share of the RTL Mining and Earthworks joint venture this year.