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.