Announcement of buy-back - Appendix 3C

DOWNER ANNOUNCES ON-MARKET BUY-BACK
Downer EDI Limited (Downer) announced today it intends to undertake an on-market buy-back of up to 70.1 million shares (being approximately 10% of its shares on issue).

The Chief Executive Officer of Downer, Grant Fenn, said: “Downer believes the buy-back is the most effective way to return the proceeds from its recent divestment program to shareholders.

“As part of our Urban Services strategy, we have announced the sale of Mining and Laundry assets that will deliver total proceeds of $605 million,” Mr Fenn said. “We have received $476 million so far and we expect to receive the balance by the end of the 2021 calendar year.

“After considering Downer’s operating outlook, our capital structure and the proceeds from our divestment program, we have decided to initiate an on-market buy-back of up to 10% of shares on issue.

“Downer’s balance sheet is strong and our businesses are delivering high operating cash conversion. We will continue to invest in these businesses and target a dividend payout ratio of between 60% and 70% over time.”

Downer will only buy-back shares at such times and in such circumstances as it considers beneficial to the efficient capital management of Downer and the buy-back is therefore dependent upon the prevailing share price, market conditions, volumes and other relevant factors.

The buy-back will be within the “10/12 limit” permitted by the Corporations Act 2001 (Cth) and therefore does not require shareholder approval. An Appendix 3C for the buy-back is attached to this announcement.

Authorised for release by Downer’s Chief Executive Officer, Grant Fenn.

For further information please contact:
Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61 439 470 145

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Announcement PDF