27/04/2021 - 11:00

Downer selling Otraco for $79m

27/04/2021 - 11:00

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Downer EDI has continued its shift from the mining services sector after announcing the sale of its tyre management business in WA.

Downer selling Otraco for $79m
Downer is selling tyre management business Otraco for $79 million.

Downer EDI has continued its shift from the mining services sector after announcing the sale of its tyre management business in Western Australia.

Downer is selling Otraco for $79 million to Tokyo-listed mobility solutions company Bridgestone, which operates in more than 150 countries.

Based in Kewdale, Otraco has provided tyre management services to the Australian mining sector since 1972. The company also has operations in Africa and South America.

The deal forms part of Downer's strategy to rid its portfolio of mining businesses and follows the $200 million sale of its Open Cut Mining West division to local contractor MACA in February.

Earlier, Downer had sold down its stake in South Pacific Laundries Perth (as part of its Spotless division) to a private equity firm in NSW for $155 million.

Total proceeds from the sale of Downer’s mining and laundries assets now stands at $605 million, the company on Tuesday said.

That includes the Otraco deal, which is expected to occur before the end of the year.

Downer was trading 2 per cent lower at 12:14pm AEDT to $5.31.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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