MACA gains $3bn in contracts with Downer acquisition
February 2, 2021News Vanessa Zhou The Gruyere site. Image: Gold Fields / Gold Road. MACA has completed a takeover of Downer’s Mining West business, including its four ongoing contracts in Western Australia. MACA will replace each of the four contracts with new variants, including with Fortescue Metals Group (Eliwana iron ore mine and rail project), Citic Pacific (Sino iron project), Ansteel (Karara iron ore joint venture project) and Gold Fields and Gold Road Resources (Gruyere joint venture project).
MACA chief executive Mike Sutton said the company welcomed more than 96 per cent of the Mining West workforce, who would also transition to an employment with MACA.
“The acquisition of the Mining West business will provide MACA with a very meaningful addition of a large scale mining fleet that is currently engaged four long-life projects, all with quality customers that are well known to me and other key members of MACA’s management team,” Sutton said.
“With the inclusion of Mining West, MACA now has total contracted work in hand of $3.3 billion at 31 December 2020, that provides a robust revenue base well past (the 2025 financial year).
“MACA remains very active with its tendering activities and is well placed to pursue a significant number of opportunities across both current and new projects.”
MACA has offered over $200 million for the acquisition, $109 million of which has been paid to Downer.
The former will pay an additional $66 million through $5.5 monthly instalments over a year, with remaining balance sourced from the unwinding of working capital balances.
MLD Price at posting:
$1.35 Sentiment: None Disclosure: Held
