Downer EDI shares went into a trading halt yesterday to allow the company to start a $400 million capital raising as part of a revamp of the company.
Downer said that the revamp includes plans to acquire 100% ownership of Spotless group and plans to sell off capital-intensive businesses like mining contracting and laundry.
As well, the company will write off around $386 million in charges in a goodwill impairment, restructuring and portfolio review costs, payroll remediation, legal settlements, and historical contract claims adjustments.
That will see a loss for the year to June of around $156 million, down from a profit of $276 for 2018-19.
The issue will be a one new share for every 5.58 existing shares (fully underwritten) at $3.75 a…
Read the full article at: https://www.sharecafe.com.au/2020/07/22/downer-halted-amid-400m-raising-corporate-restructure/