Downer flags FY loss, $400m raising

Downer EDI expects to report a full-year statutory net loss of $150 million-$160 million after recognising charges worth $386 million on account of goodwill impairment, restructuring and portfolio review costs.

The engineering and services contractor has also announced a $400 million capital raising to strengthen its balance sheet and fund acquisition of the remaining shares in cleaning and catering firm Spotless, in which it acquired majority control in 2017.

Downer is raising money through a 1-for-5.58 pro rata entitlement offer, with shares to be offered at $3.75 per share, a 12 per cent discount to its closing price on Monday.

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