Downer offloads Century Drilling
Downer EDI Limited (DOW) has announced the sale of the company’s remaining 49% of MB Century Drilling, an oil, gas and geothermal drilling business, to Mohamed Al Barwani Holding Company LLC. The company said that cash inflows would be around $88 million, however there would be a pre-tax gain of only around $5 million once repayments and impairments had been factored in.
Managing Director and CEO, Geoff Knox said Downer was happy to complete the sale and the repayment of related shareholder loans.
”The initial 51% of MB Century was sold to MB Holding in 2007, along with a call option over the remaining 49%,” Mr Knox said.
The announcenement comes just days after the company defended its financial position after reports it had halted supplier payments to preserve cashflow.
At 1106 AEST, Downer shares were trading down 10c to $3.64.
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