Nov 21 (Reuters) - Downer Edi Ltd DOW.AX :
* Downer to sell its freight rail business to progress rail
* Deal for $109 million
* Downer's rail division will have more than $8 billion of work-in-hand after divestment of freight rail business
* Rail division on track to achieve its underlying full year earnings target
* Due to sale, to book non-cash write down of $40 million regarding freight rail goodwill and legacy assets
* Around 360 people currently employed by Downer are expected to transfer to progress rail as part of transaction