The transaction values the business at $US137.35 million ($156.2 million).

MB Holding is one of the fastest growing and largest oilfield services companies in the Middle East with a turnover of about $US600 million and total assets in excess of $US660 million.

The sale, which Downer has been considering for some time, will be carried out in two stages.

The first stage will involve the sale to MB Holding of 51% of a new Century holding company that owns the Century assets and businesses.

Downer EDI will hold the remaining 49% interest. This transaction will be substantially completed by December 17 and MB Holding will pay Downer EDI $US70.05 million for its 51% interest.

The balance of Downer EDI’s interest in Century will be sold to MB Holding, either at the end of three years under a Downer EDI put option, or earlier should MB Holding elect to exercise a corresponding call option.

The price for the remainder of Century will be net assets at the time.

MB Holding chairman Mohammed Al-Barwani said the acquisition of Century strengthened the company’s presence in the Asia Pacific and positioned MB Holding well in its overall strategy of becoming a global player providing integrated oil field services.

Downer plans to use the proceeds from the sale to reduce debt and meet US dollar denominated trade payables.