from afr
Listed mining contractor Maca is putting the finishing touches on a capital raising to fund its purchase of Downer EDI's Western Australian mining services arm.Maca is readying a capital raising to buy Downer's WA mining services arm.
Rob HomerFund manager sources said the company had Euroz Hartleys Limited in its corner to help it stitch together the deal, which would see it raise $80 million-odd in fresh equity.Money raised would be used to help buy Downer's Open Cut Mining West division for just under $200 million, sources said.
Downer told the market last week that it was in discussions with Maca to offload the business unit.Those discussions came nine months after Downer decided to suspend the sale of its entire mining services business in March, due to "extraordinary market volatility caused by the COVID-19 pandemic".
Although it's selling Open Cut Mining West, Downer will still hold onto its Open Cut Mining East, Underground and Otraco mining services units.It marks a flurry of sales for Downer in the past month or so. The company sold a 70 per cent stake in its laundries business to local private equity firm Adamantem Capital at the start of December and offloaded its blasting services business in November for $62 million to a subsidiary of Chilean company Sigdo Koppers group.
The purchase is a chunky bite for the $311 million Maca, which posted $808 million revenue in fiscal 2020 and $120.4 million EBITDA. Maca's shares have performed strongly through the pandemic, and are trading up 12.6 per cent to $1.16 year-to-date.Maca's shares went into a trading halt on Monday morning.
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