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Perenti flagged the potential to buy Downer's mining business in its half-year results.

Downer, Perenti suspend mining sale talks

Infrastructure group Downer EDI's possible sale of its mining business to Perenti Global has been suspended due to the market volatility caused by the coronavirus pandemic.

Both businesses said talks had stopped. These have been under way since Perenti flagged the potential buy in its February half-year results presentation.

Last month, Perenti said it was still considering the purchase of Downer's mining business, but dismissed a report that the company had offered to pay $700 million. Perenti said that amount was significantly above what was being considered.

The company today said it continued to believe the potential acquisition had merit but doing so in current market conditions would not be best for shareholders.

Perenti group managing director Mark Norwell said the company has not ruled out the acquisition altogether.

"We will maintain a watching brief on the situation and do not rule out re-engaging with Downer if market conditions improve," he said.

Downer chief executive Grant Fenn said the mining business was performing well.

The company said it was still pursuing the potential sale of its laundries business.

Shares in Downer had dropped 10.4 per cent to $3.74 at 11:45am AEDT.

Perenti shares also fell, dropping 6.9 per cent to 88 cents per share.

Share Price

Closing price for the last 90 trading days
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BN30 Index

Index = 100 as of 4 Jan 2016
Source: Morningstar

Top 10 Shareholders

Substantial shareholders as published in the annual report.
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Total Shareholder Return as at 28/02/20

1 year TSR5 year TSR
104thAustal60%20%
384thSeven Group Holdings-7%25%
457thMonadelphous-17%15%
481stPerenti Global-20%32%
788thSeven West Media-70%-32%
671 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
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Share Transactions

25/02/19
$34k Bought
13/07/18
$0 Other
13/07/18
$0 Other
Total value as at the date of the transaction
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Revenue

2nd↑Seven Group Holdings$4,166.4m
3rd↑Austal$1,868.7m
4th↑Perenti Global$1,846.5m
5th↓Seven West Media$1,556.4m
6th↑Monadelphous$1,483.6m
198 listed industrial companies ranked by revenue.
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