SYDNEY: Downer EDI Limited entered into an agreement to sell its tyre management business (Otraco) to Bridgestone Corporation (Bridgestone). The sale price represents an enterprise value of $79 million, a news release said.
Bridgestone, which was established in 1931 and is listed on the Tokyo Stock Exchange, is a global company with operations in more than 150 countries providing world-class tyres and sustainable mobility solutions.
The Chief Executive Officer of Downer, Grant Fenn, said the sale of Otraco was another important step in Downer’s divestment of its portfolio of Mining businesses as part of its Urban Services strategy.
“The sale of Otraco follows Downer’s exit from its Underground mining, Open Cut Mining West, Downer Blasting Services and Snowden consulting businesses and also our share in the RTL Mining and Earthworks joint venture,” Mr Fenn said.
“We remain in active discussions with a number of interested parties in relation to the Open Cut Mining East business.”
Completion of the Otraco transaction, which is subject to regulatory approvals and other customary conditions, is expected to occur before the end of 2021.
Downer’s sale of Mining and Laundries assets to date, including Otraco, will deliver total proceeds of $605 million, of which $476 million has been received.