Government to Acquire Shares in the Submarine Corp

Government to Acquire Shares in the Submarine Corporation

MEDIA RELEASE

THE HON. JOHN MOORE, MP Minister for Defence

Senator The Hon Nick Minchin
Minister for Industry, Science & Resources

The Hon. John Fahey Minister for Finance & Administration

Monday, 26 June 2000 MIN148/00

Government to Acquire Shares in the Australian Submarine Corporation

The Federal Government today announced that it would acquire the remaining shares in the Australian Submarine Corporation (ASC), subject to achieving a satisfactory outcome on price.

The Government's intention is that the company be restructured to implement more sustainable arrangements for the future support of the Collins Class submarines and facilitate its onward sale.

The decision follows the review of options for the future ownership of ASC by the Department of Defence, and the Office of Asset Sales and IT Outsourcing (OASITO), assisted by the firms N M Rothschild (Australia) Limited, and Blake Dawson Waldron.

The decision to acquire the remaining shares in ASC reflects the importance the Government attaches to ensuring the best possible arrangements for bringing the Collins Class submarines to a fully operational state, and supporting them throughout their operational life.

The Government is keen to pursue the benefits of full private ownership of ASC. It recognises the considerable skills base that has been established at ASC and the company's importance to South Australia. ASC is expected to have a close, ongoing relationship with the Design Authority for the submarines, Kockums AB, and its new parent, Howaldtswerke-Deutsche Werft AG (HDW), whose cooperation and support have been welcomed by the Australian Government.

ENDS

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