Kier works in joint venture with Australian contractor Downer as DM Roads Services Pty Ltd, formerly DownerMouchel. Kier鈥檚 share of this joint venture is owned by KHSA, a 100% subsidiary of Kier.
Downer has agreed to purchase KHSA for AUS$43.7m (拢24m), thus buying out Kier from the joint venture.
Kier expects to get the cash in early 2019, booking a profit of around 拢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.聽 For the financial year ended 30th June 2018, KHSA reported a profit before tax of 拢7.0m.聽 The gross assets of the company were 拢52.1m at 30th June 2018.
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