Ann: ASSET: DOW: Keolis Downer signs agreement to acquire ATE

• Release Date: 11/03/15 11:16
• Summary: ASSET: DOW: Keolis Downer signs agreement to acquire ATE
• Price Sensitive: No
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					DOW
11/03/2015 11:16
ASSET
PRICE SENSITIVE
REL: 1116 HRS Downer EDI Limited

ASSET: DOW: Keolis Downer signs agreement to acquire ATE

Media/ASX and NZX Release
11 March 2015
KEOLIS DOWNER SIGNS AGREEMENT TO ACQUIRE AUSTRALIAN TRANSIT ENTERPRISES

Downer EDI Limited (Downer) announced today that the Keolis Downer joint
venture has signed an agreement to acquire Australian Transit Enterprises
(ATE) for $163 million.

ATE is one of Australia's largest route, school and charter bus businesses
operating a fleet of over 900 buses in South Australia, Western Australia and
Queensland.

The Chief Executive Officer of Downer, Grant Fenn, said the acquisition of
ATE supported
Keolis Downer's strategy to expand both geographically and into new modes of
public transport.

"Keolis Downer, through Yarra Trams, has been operating and maintaining the
Melbourne tram network successfully for over five years and, in July 2014,
Keolis Downer began operating and maintaining the Gold Coast Light Rail," Mr
Fenn said.

"The acquisition of ATE will see Keolis Downer expand into substantial bus
operations and also into the new geographies of South Australia and Western
Australia."

Mr Fenn said ATE had annual revenues of about $190 million, long term route
service contracts with State Government authorities and a strong and
experienced management team capable of developing the business further with
the support of Keolis Downer.

"Keolis Downer is well placed to build on this acquisition and become the
leading operator of public transport in Australia," Mr Fenn said.

Completion of the acquisition is scheduled to occur in early April, 2015
subject to the satisfaction of conditions precedent.

Keolis Downer will fund the acquisition through a $65 million bank loan from
HSBC and shareholder loans from Keolis and Downer. The bank debt is
non-recourse to the parent entities.

Keolis Downer is a joint venture between Keolis, one of the world's leading
public transport operators, and Downer.

For further information please contact:
Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61
439 470145
Luke Thrum, Manager Investor Relations    +61 459 828720

Downer EDI Limited (Downer) provides services to customers in market sectors
including Mining, Rail, Transport, Utilities, Communications and Engineering,
Construction & Maintenance. Downer employs approximately 20,000 people,
primarily in Australia and New Zealand but also in the Asia-Pacific region,
South America and Southern Africa.
End CA:00261707 For:DOW    Type:ASSET      Time:2015-03-11 11:16:38