18th Sep 2009 07:01
RNS Number : 2720Z
Dept for Business Innovation&Skills
18 September 2009
Uk Atomic Energy Authority announces sale of its commercial business, UKAEA Limited
The UK Atomic Energy Authority today announced it has reached an agreement with Babcock International Group for the sale of 100% of its commercial arm, UKAEA Limited, for £50.0m.
The sale follows the announcement of 30 March 2009 that UK Atomic Energy Authority was seeking a buyer for UKAEA Limited. The sale of the business will help to reinforce the UK's strong heritage in the nuclear industry and provide a platform for the further development of skills in this important marketplace.
The transaction is expected to close by the end of 2009. The sale process follows a strategic review performed by the UK Atomic Energy Authority following passage of the Energy Act 2004.
Business Secretary Peter Mandelson, said:
"Today's announcement is good news for UKAEA Limited and its employees. The sale will allow the company, as part of Babcock International, to continue its development and take advantage of new opportunities in the nuclear industry. It also generates good value for the tax payer."
Chairman of the UK Atomic Energy Authority, Lady Judge, said:
"We are delighted to have agreed the sale of UKAEA Limited to Babcock International, which represents the culmination of the strategy initiated in 2004, following the introduction of the Energy Act that year.
"The new ownership structure will help give UKAEA Limited greater commercial focus on its operations, allowing it to capitalise on its core skills, strong track record and brand and I am confident that it will continue its growth in the UK and internationally under Babcock International's ownership."
Notes to Editors
1. The sale of UKAEA Ltd is the first such transaction carried out under the Government’s Operational Efficiency Programme (“OEP”). This was launched last year and is being managed by the Shareholder Executive. OEP aims to ensure more efficient and commercial operation of assets held by the public sector, including certain businesses. The Shareholder Executive (http://www.shareholderexecutive.gov.uk) works with their Boards, employees and advisors to achieve these objectives, which in certain circumstances may lead to disposals.
2. UKAEA Limited provides nuclear decommissioning, waste management and site environmental remediation services in the UK and overseas. It also manages the pension administration for a number of nuclear industry pension schemes. UKAEA Limited, as part of UK Atomic Energy Authority, has been an established part of the UK nuclear industry over the last fifty years. UKAEA Limited offers site management services at three Nuclear Decommissioning Authority sites and nuclear project management and consultancy services in the UK and international markets.
3. UKAEA Limited’s parent, the UK Atomic Energy Authority, continues to encompass fusion research for the UK, is one of the joint venture partners in the Harwell Science and Innovation Campus, provides IT and Telecommunications services to the group and is responsible for corporate governance. It is a Non-Departmental Public Body responsible to the UK Department for Business, Enterprise and Regulatory Reform.
4. Babcock is a major supplier of nuclear engineering and support services in the UK. It provides engineering skills and services across a range of sectors and operates extensively in the UK, as well as in Africa, Canada and Australia.
5. The purchase consideration includes net cash balances of £11.6m.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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