NSW's Downer EDI has sold its remaining mining services assets to a joint venture that includes Perth-based AvidSys Group for $150 million in cash.
AvidSys, as part of a JV with Indonesian mining services provider PT Bukit Makmur Mandiri Utama (BUMA), has bought Downer’s Open Cut Mining East business, which has about 1,100 employees and “significant contracts in place with major mining companies”.
The deal follows the earlier sale of Downer’s Open Cut Mining West division to Welshpool-based MACA, which paid more than $200 million in cash.
Also this year, Downer sold its Otraco tyre business – which services the mining sector – to South Australia’s Bridgestone, as well as exited its underground mining operations at OZ Minerals’ Carrapateena mine.
Downer chief executive Grant Fenn said the latest deal was the company’s final step in offloading its portfolio of mining businesses, which also included mining consultant Snowden, Blasting Services, RTL Mining, and Downer’s Earthworks joint venture.
Mr Fenn said the total proceeds from Downer’s divestment program, including the sale of its laundries businesses, amounted to $778 million.
The deal with AvidSys and BUMA is expected to be completed before the end of the year.
BUMA has already paid a $16 million deposit to Downer, with the remaining acquisition cost to be paid upon completion.
“This acquisition of Downer Mining Open Cut East business is an important milestone in our strategy of leveraging our many years of combined experience, to position BUMA International as a provider of choice across the sectors in which we operate,” AvidSys chairman and BUMA International director Himanshu Gautam said of the acquisition.
AvidSys owns 20 per cent of the joint venture, and BUMA the remaining 80 per cent.
BUMA is a subsidiary of PT Delta Dunia Makmur Tbk, which is listed on the Indonesian stock exchange.