Sharechat Logo

Downer buys Tenix utilities business for A$300 mln

Monday 20th October 2014

Text too small?

Downer EDI, the infrastructure, mining and rail building firm, has bought trans-Tasman utilities business Tenix Holdings Australia for A$300 million, which it expects will boost earnings from the first year of ownership.

Sydney-based Downer has signed an agreement to buy the privately-held Tenix on a cash and debt-free basis, which it will fund through an existing bank facility, it said in a statement. The deal is expected to be completed on Oct. 31, and Downer said it will increase earnings from the first year. Tenix generated revenue of A$791.1 million in 2014 and earnings before interest and tax of A$29.4 million, and forecasts sales to be lower due to the completion of resources projects with flat Ebit.

"We have said consistently that we are interested in opportunities that are strategic, grow our capability and the right price," Downer chief executive Grant Fenn said. "There is little overlap between the two companies and Tenix will be the foundation for a new core utilities business for Downer."

Tenix designs, builds and operates network assets for utility companies across New Zealand, Australia and the Pacific, which makes up about 85 percent of its revenue. The remainder comes from its resources and energy unit, which designs, builds, installs and maintains infrastructure for mining, mineral processing, oil, gas and petrochemical and other manufacturing companies.

The ASX-listed shares last traded at A$4.05 on Friday.

 

 

 

 

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar holds gains on improved dairy, bank capital outlook
MARKET CLOSE: NZ shares gain; banks rally on Reserve Bank capital decision
NZ dollar rises; bank capital rules less harsh than expected
RBNZ relaxes capital requirements, allows preference shares, extends phase-in
NZ dollar extends gain amid mixed US data, possible trade progress
MARKET CLOSE: NZ shares dip on eve of major regulatory decisions
NZ dollar sees off global headwinds, holds above 65 US cents
NZ dollar holds above 65 US cents; dairy auction prices mixed
Dairy index falls on weaker butter, milk fat demand
MARKET CLOSE: NZ shares join global decline; US tariff move weighs on exporters

IRG See IRG research reports