Contract mining specialist Perenti (ASX: PRN) has entered into a share sale agreement to divest BTP, its equipment rental and parts sales business, to Beetle Industries.

Beetle is an investment vehicle established by a private consortium led by Cratus Group, a resources, logistics, structural capital and infrastructure supply company with operations in Australia, Indonesia, China, Hong Kong and Singapore.

BTP sits outside Perenti's core contract mining operations, which are anchored by underground specialist Barminco — the business whose 2019 combination with the then Ausdrill created the group now known as Perenti — and delivered across Australia and Africa, with recent contract wins extending the footprint to the United States.

Under the terms of the agreement, Perenti will receive total consideration of $100 million, comprising an initial cash payment of $80 million payable on completion and a deferred payment of $20 million due 12 months after completion. The deferred payment is not subject to any performance hurdles or conditions.

Beetle will fund the acquisition through a debt facility to be provided by a 'big four' Australian bank, together with equity and shareholder loans provided by consortium members, including an Australian wholly-owned subsidiary of Cratus Group. The buyer is in advanced negotiations with its debt financier.

Completion is expected to take place no later than the end of October 2026, once Beetle finalises its funding arrangements and all conditions precedent to completion are satisfied. The conditions precedent are customary and include obtaining certain consents and approvals from third-party contract counterparties.

Perenti Chief Executive Officer and Managing Director Vanessa Torres said the divestment of BTP is in line with the company's strategy to optimise its portfolio and allocate capital towards higher-returning opportunities.

"Following a strategic review of our portfolio, we have agreed to divest our parts and equipment hire business," Ms Torres said.

"The transaction reflects our continued focus on actively managing our portfolio and allocating capital to businesses aligned with our competitive strengths in a way that maximises the Group's total shareholder returns.

"While BTP's performance has been impacted by market headwinds in recent years, its team has remained committed and worked diligently to support the profitability of the business. We believe the new ownership structure will provide a strong platform for BTP to pursue future opportunities and long-term success."

As a result of the BTP transaction, Perenti will recognise a non-cash loss of approximately $64 million in its FY26 financial accounts. The charge does not affect the cash consideration payable under the agreement.

Chief Financial Officer Michael Ellis said the proceeds from the sale of BTP will provide additional flexibility to recycle capital into opportunities that exceed the company's performance hurdles.

"In the short term, this includes supporting the recent contract wins at Bellevue Gold in Australia and Fourmile in the USA but also it provides additional capacity for our active tender pipeline and other inorganic opportunities."

Between signing and the end-October 2026 deadline, the timing now rests on Beetle finalising its debt facility and the customary counterparty consents being satisfied, with the unconditional $20 million deferred instalment then falling due a full 12 months after settlement.

Prior to markets opening, PRN was steady at $2.45 with a market capitalisation of $2.290 billion.