Thank you kindly Jacko and seasons greetings.
Do you think Downer is lined up for even more work up there?
The other day (December 12)
Bridget at The Australian said;
https://www.theaustralian.com.au/bu...n/news-story/af1369d9e03d6805ed317155ba373c8b
“Sigdo Koppers gets cold feet on Downer Mining acquisition
BRIDGET CARTER
DECEMBER 12, 2019
Chilean conglomerate Sigdo Koppers is understood to have walked away from Downer Mining after earlier considering an acquisition of the business.
It is understood that another party is closing in on the asset, although those close to the sales process say that engagement with bidders is ongoing and a sale is not expected to be concluded until next year.
The division of the Australian mining services provider has been available for sale for at least a year, but an official sales process was launched around August. Private equity firm Oaktree is also thought to be out of the picture.
South America’s Sigdo Koppers showed some interest in buying Downer Mining last year. It owns mining services business Magotteaux and has operations in construction, transportation and logistics.
The company is known to the Australian market after it invested $70m in the previously listed miner Bradken, which is now owned by Japan’s Hitachi.
At Downer’s annual meeting last month, the company said the sales process was progressing and the market would be informed of any developments.
While Downer Mining is a leader in Australia, with excellent people and a strong and proven track record, it is highly capital-intensive.
Mining contributed about 12 per cent of Downer’s profit in the 2019 financial year, but required more than 50 per cent of the group’s total capital spending.
Downer, which bought catering and cleaning company Spotless in 2017 for $1.2bn, counts Rio Tinto, Glencore and BHP Billiton Mitsubishi Alliance as key customers for its mining arm.
Without the mining arm, it is likely Downer would be treated by investors as an engineering or infrastructure services provider.
DataRoom first revealed in April last year that parties around the market were being tested for their appetite for a potential acquisition of the Downer Mining division. Last year, investment bank Deutsche was working with Downer on a sale of its mining division to Oaktree.
The price tag is supposedly $700m, but some think a $550m valuation is more realistic.
With respect to Downer Mining, former Downer Mining boss Geoff Knox and Citi had been advising on a potential acquisition by Oaktree last year.
Oaktree was said to have been spooked by possible contract losses with a key customer that could have been triggered by a sale and a management buyout was touted.”
.... it will be interesting to see who takes it over ?
Meantime perhaps it has been undercutting in order to win contracts and look more appealing to prospective buyers ?
(Something I hope BGC Contracting refrained from )
Is there any other news from up your way?
Poor old Altura is doing it very rough but the NRW team up there are apparently still doing a fantastic job.
Anyway Jacko, it’s nice to see you.
I would invite you to a pre Christmas coffee if you are in town but Christmas has already come upon me and change is all around.
I hope you are well
And cheers
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