Perenti (ASX:PRN) considers buying Downer’s mining arm

Company News

by Rachael Jones

Diversified mining services company Perenti (ASX:PRN) says it is currently giving consideration to the potential purchase of Downer’s mining services division.

The process is ongoing and Perenti would only put forward an offer to acquire the business if it were to align with its strategy and deliver value for the Company’s shareholders.

In particular, Perenti notes that the transaction value speculated in the article is significantly above the level Perenti may consider offering and Perenti would only pursue a transaction that was EPS accretive.

There is no certainty that a transaction will eventuate but if a transaction is agreed with Downer EDI, Perenti would consider a range of funding options and if an equity raising was to be pursued it would be structured as an entitlement offer only.

Shares in Perenti (ASX:PRN) are up 4.96 per cent to $1.48.