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Mon December 17 2018

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Kier sells Australian JV for £24m

15 Nov Kier Group has agreed terms for the disposal of an Australian highways joint venture it acquired as part of its takeover of Mouchel in 2015.

Kier works in joint venture with Australian contractor Downer as DM Roads Services Pty Ltd, formerly DownerMouchel. Kier’s share of this joint venture is owned by KHSA, a 100% subsidiary of Kier.

Downer has agreed to purchase KHSA for AUS$43.7m (£24m), thus buying out Kier from the joint venture.

Kier expects to get the cash in early 2019, booking a profit of around £15m on the deal after post-completion adjustments. The proceeds from the sale will be used to pay down debt.

KHSA operates in joint venture with Downer EDI Works Pty Ltd to provide road asset management and maintenance services in Australia.  For the financial year ended 30th June 2018, KHSA reported a profit before tax of £7.0m.  The gross assets of the company were £52.1m at 30th June 2018.

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