2nd Nov 2009 07:00
Reference: 2009/213
Date: 2 November 2009
UK ATOMIC ENERGY AUTHORITY COMPLETES SALE OF ITS COMMERCIAL BUSINESS, UKAEA LIMITED
The Government today welcomed the completion of the UK Atomic Energy Authority's £50 million sale of 100% of its commercial arm, UKAEA Limited, to Babcock International Group.
The sale is the first transaction under the Government's Operational Efficiency Programme, launched last year. The Programme aims to ensure more efficient and commercial operation of assets held by the public sector, including certain businesses. This aspect is being managed by the Shareholder Executive.
The sale completed on 31 October and followed 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.
Business Secretary Lord Mandelson said:
"This is a win, win, win result. It gives UKAEA a strong partner, generates good value for the tax payer and allows the Nuclear Decommissioning Authority to enjoy a broader array of nuclear decommissioning expertise."
Chief Secretary to the Treasury, Liam Byrne said:
"Asset sales like this are an important part of our plans to bring down debt. As we lock in the recovery we'll move to halve the deficit over 4 years, so it's good to see transactions like this on track, delivering value for British taxpayers."
Notes to Editors
1. The Operational Efficiency Programme (“OEP”) was launched in July 2008 and led by 5 senior external advisors. The Programme has been designed to explore whether further savings could be achieved in 5 related areas:
It reported at Budget 2009 and made a wide range of recommendations.
2. The asset strand of 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.
3. 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.
4. 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, Innovation and Skills.
5. 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.
6. The purchase consideration includes net cash balances of £11.6m.
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.
Related Shares:
Babcock