Perenti weighing Downer deal
PERTH (miningweekly.com) – Mining services provider Perenti on Wednesday confirmed that it was considering the potential purchase of ASX-listed Downer EDI’s mining services division, but dismissed claims that it would be offering up to A$700-million for the division.
A report in The Australian Financial Review this week stated that binding offers from strategic and private equity bidders would need to be submitted by the end of the week, with Downer EDI looking for offers in the region of A$700-million for its mining services business.
Perenti MD Mark Norwell on Wednesday told shareholders that the process for the Downer EDI division was still ongoing, and that Perenti would only put forth an offer to acquire the business if it were to align with the company’s strategy to deliver value for shareholders.
“In particular, Perenti notes that the transaction value speculated in the article is significantly above the level Perenti may consider offering and Perenti would only pursue a transaction that was earnings per share accretive,” said Norwell.
He noted that there was no certainty that a transaction would eventuate, but if a transaction was agreed with Downer EDI, Perenti would consider a range of funding options, and if an equity raising was to be pursued, it would be structured as an entitlement offer only, he added.
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