SYDNEY: Downer EDI Limited said Tuesday it has agreed to sell its 49% stake in the Keolis Downer joint venture to French transport operator Keolis Group, in a move that sharpens Downer’s strategic focus and simplifies its portfolio.
The transaction values the joint venture at $132 million on an enterprise basis. Downer is set to receive cash proceeds corresponding to its share, adjusted for net debt, retention amounts and any pre-completion dividends. The deal, subject to regulatory approvals including Australia’s Foreign Investment Review Board, is expected to close by late 2025 or early 2026.
Formed in 2009, the Keolis Downer partnership has grown into a major operator of bus and light rail networks across Australia.
“This divestment enables a more focused approach to capital allocation—further enhancing balance sheet flexibility that supports potential future capital management initiatives,” Downer CEO Peter Tompkins said in a statement.
The company had classified the asset as “held for sale” as of Dec. 31, 2024.
Downer emphasized that the sale would not affect its rollingstock maintenance business, which it called a growth area within its Rail & Transit Systems operations.
Headquartered in North Ryde, New South Wales, Downer (ASX: DOW) employs more than 26,000 people and provides integrated services across infrastructure sectors in Australia and New Zealand.