- Downer EDI’s mining services division is reported to be under consideration for a management buyout.
- The company says it hasn’t received any such proposal.
- But CapRaise is said to be seeking expressions of interest from investors.
The mining services side of Downer EDI is reportedly under consideration for a management buyout.
Documents have been sent out to parties by an organisation called CapRaise seeking expressions of interest for an investment via a management buyout, says The Australian newspaper.
Downer EDI Limited has noted the report on a potential management buyout of its mining services business.
“Downer confirms that it has not received any such proposal,” the company told the ASX.
Downer’s mining services division has revenue of about $1.4 billion and 5000 employees.
“While Downer Mining is not named as the company involved, CapRaise describes the investment opportunity as a ‘major tier one mining services provider’ and ‘one of Australia’s largest open-cut mining service contractors’, which analysts say can only be Downer Mining,” says The Australian.
Downer EDI has overall revenue of $12.6 billion, including the cleaning and catering company Spotless which it bought last year for $1.27 billion.