WA headquartered Avidsys Group, through its JV with Indonesian Mining services provider PT Bukit Makmur Mandiri Utama (BUMA), has entered into an agreement to acquire one of Australia’s largest open cut mining services contractors – Downer EDI Limited’s Open Cut Mining East business.
The JV Company, BUMA international Pty Ltd, is acquiring all the assets, liabilities, employees and contracts comprising Downer’s Open Cut Mining East business.
Avidsys Group Chairman and BUMA International Director, Ansh Gautam, noted that Open Cut Mining East has a workforce of approximately 1,100 people and significant contracts in place with major mining companies.
REMSAFE and AVID Resources (members of AvidSys Group) have a proven track record of successfully delivering medium and large projects for the mining, water infrastructure and process industries in Australia and overseas,” Mr Gautam said.
“This acquisition of Downer Mining Open Cut East business is an important milestone in our strategy of leveraging our many years of combined experience, to position BUMA International as a provider of choice across the sectors in which we operate.”
The total cash consideration payable is approximately $150 million, subject to completion adjustments. BUMA International has paid Downer a deposit of $16 million with the remainder of the purchase price payable at completion.
Completion of the transaction, which is subject to customary conditions (including novation of certain contracts), is expected to occur before the end of the 2021 calendar year.
AvidSys Group’s subsidiary AGDM Investments Pty Ltd holds rights up to 20% interest in BUMA International, with the remainder held by BUMA.
BUMA is a subsidiary of PT Delta Dunia Makmur Tbk, which is listed on the Indonesian Stock Exchange (IDX:DOID).