Downer Looks to Reshape with $400m Raising

Downer Group has today launched a $400m equity raising on the back of a $156m full year net loss. Like moving pieces on a chess-board, the company will book a $165m impairment on its Spotless business whilst also agreeing to take 100% ownership of the brand in a deal worth around $134m (Downer had previously controlled roughly 88%).

In its presentation, it acknowledged that the business would be facing some adjustment to the current environment with its E&C and hospitality businesses particularly impacted. This is hardly a surprise given that Spotless holds major contracts in the hospitality industry such as the F&B services for the MCG in Melbourne.

The group is also facing headwinds in its mining services division with the sector unsettled by volatile commodity prices and weak global growth.

Read more at the AFR here.