Contracting group MACA (ASX:MLD) is set to buy Downer EDI’s Mining West business for an acquisition value of $175 million with approximately $30 million from the unwinding of working capital balances.
Mining West is a surface contract mining business focused on the Western Australian iron ore and gold sectors.
It currently comprises four large contracts at the long-life assets of Karara (Ansteel), Eliwana (Fortescue Metals Group), Cape Preston (Citic Pacific) and Gruyere (Gold Fields, Gold Road Resources).
Downer will receive over $200 million in cash from the sale.
Shares in MACA (ASX:MLD) last traded at $1.16