Downer EDI wins $224M contracts

Friday 27th April 2012

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Downer EDI said it has won a series of contracts worth more than NZ$224 million with Auckland Council and its transport company for maintaining roads, parks, playgrounds and sports fields and a wide range of buildings from council offices to residential properties.

The Australia-based engineering company said Auckland Transport awarded it a four-year $130 million roading contract covering maintenance across its south western region.

The contract can be extended twice by two years each which would give the contract a $260 million potential value, it said.

The council has awarded it five-year maintenance contracts covering all parks, playgrounds and sports fields in South Auckland rural and urban areas worth $70 million over five years which can be extended by a further three and then two years, giving a potential value of $140 million.

The council has also awarded it a three-year contract to provide electrical, plumbing, carpentry and mechanical services, including air conditioning, on many properties. Downer has two NZX-listed debt securities.

Its $150 million of senior bonds maturing in September last traded at $102.413 per $100 face value while its $200 million of subordinated perpetual preference shares, which are due to be reset in June 2012 at a 4.05 percent margin over the one-year swap rate, last traded at $79.091 per $100 face value.

BusinessDesk.co.nz

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