Downer completes sale of AUS projects business

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Downer has announced its completed the sale of its $212 million Australian Transport Projects business to DT Infrastructure Pty Ltd.

DT Infrastructure’s Australian Transport Projects business is responsible for delivering major construction services to mainly government, including design and construction of roads, rail, signalling, station works, bridges and more.

The sale will see Downer’s business, people and capabilities transferred, including around 1000 staff and a forecast work in hand of approximately $2 billion nationally.

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There are some outstanding items at the date of completion. Downer is yet to receive a number of ‘customer consents. Until these are finalised, and the consents are received, the contracts will remain with Downer. Downer has agreed to defer $20 million of the proceeds until the remaining customer consents are received and the contracts novated.

Downer CEO Peter Tompkins said the 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,” Tompkins said.