Downer (AXS:DOW) in $400m equity raising and corporate overhaul

Company News

by Rachael Jones

Downer (AXS:DOW) has launched a $400 million equity raising to strengthen it’s balance sheet, fund acquisition of the remaining shares in Spotless and provide flexibility for continued investment in Downer’s core business.

The company also updated the market on its 2020 full year financial results, forecasting underlying EBITA (earnings before interest, tax and amortisation) of $410 million to $420 million, and underlying NPATA (net profit after tax and amortisation) of $210 million to $220 million.

The company signalled it is likely to exit businesses such as mining and laundry.

Shares in Downer (AXS:DOW) are in a trading halt - Last traded at $4.26.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.