ASC to be sold off

The former Australian Submarine Corporation (ASC Pty Ltd) will be sold under a competitive tender by the South Australian federal government. The tender would most likely begin in late 2007, with a sale completed by the second half of 2008 and would protect the company’s long term interests.

It is deemed vital that ASC continue to have access to essential technical assistance from international partners and governments and a trade sale will allow the government to ensure that the company’s new owners are acceptable to overseas technology suppliers.

A trade sale will also allow the government to assess the financial strength and industrial experience that potential buyers would bring to the company.

The government had flagged that ASC would not be sold until the Air Warfare Destroyer and amphibious ship contracts had been decided. The selection of the prime shipbuilder for the amphibious ships and the “second pass approval” of the destroyer project should be completed by mid-2007.

The government also will cap foreign ownership of the company at 49% while the chairman, chief executive officer and a majority of directors will have to be Australian citizens and the ASC head office, substantial operations and place of incorporation will have to remain in Australia.