The Minister for Finance and Administration and the Minister for Defence announced today that the Commonwealth and Transfield Thomson-CSF Investments Pty Limited, a joint venture company beneficially owned by the Transfield Holdings Pty Limited group and the Thomson-CSF group, had executed a contract for the sale of the Commonwealth's shares in ADI Limited.
The negotiated price for the Commonwealth's shares is $346.78 million, which represents an optimal return for taxpayers.
The Government is extremely pleased with the outcome of the ADI sale process and is confident that the Joint Venture is well placed to build on ADI's strengths and standing within the Australian defence industry through access to new technology, management skills and capital resources.
The Joint Venture, which brings together two corporations with complementary skills and experience with the dual benefits of significant Australian involvement and access to world class defence technology, will ensure that ADI is better positioned to provide enhanced and more efficient products and services for the benefit of its customers and the Australian defence industry generally.
The Joint Venture has indicated its commitment to the continued operation of ADI's existing core businesses at their current locations. In particular, it is expected that ADI's operations at Albury, Bendigo, Benalla, Lithgow, Mulwala and Newcastle will continue and where, commercially possible, be strengthened by the development of new business activities, presenting opportunity for regional employment.
ADI's three development properties were not included in the transaction. These have been transferred to the ComLand Limited group of companies, which are wholly owned by the Commonwealth.
Final settlement of the transaction is expected around the end of November at which time the Joint Venture will assume ownership and full operational control of ADI Limited. Consistent with usual commercial practice, there will be an adjustment to the purchase price at completion reflecting any changes to the net asset position of ADI's business from 1 July 1999.
The Government appreciates the commitment of the TTJV consortium throughout the ADI sale process, and also wishes to thank the other parties who participated in the sale process for their interest and efforts. The Government is also highly appreciative of the assistance given by the Board and management of ADI.
