Department for Business, Innovation and Skills
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The UK Atomic Energy Authority seeks buyers for its commercial business, UKAEA Limited
The UK Atomic Energy Authority today announced it intends to offer for sale its commercial arm, UKAEA Limited. The UK Atomic Energy Authority is wholly owned by the UK Government.
The UK Atomic Energy Authority is seeking a purchaser for up to 100% of the issued share capital of UKAEA Limited, which provides nuclear decommissioning, waste management and site environmental remediation services and nuclear new build support services under contract both in the UK and overseas. The Government has indicated that it would consider retaining a stake in UKAEA Limited.
This move was initiated by a strategic review performed by the UK Atomic Energy Authority following passage of the Energy Act 2004, and is the culmination of a process to develop a commercially viable nuclear decommissioning business. UKAEA Limited has now reached a scale where it can operate and expand independently from Government. The sale process is being managed by Greenhill & Co ("Greenhill"). It is expected to complete towards the end of this year.
Secretary of State for Business, Peter Mandelson,
said:
"As the UK moves towards an era of nuclear new
build, this sale will increase efficiency, competition and value
for money for the taxpayer in the decommissioning and clean up
work of old nuclear power stations"
Chairman of the UK Atomic Energy Authority, Lady Judge,
said:
"We believe that the UK and international nuclear
decommissioning markets represent an exciting opportunity for
UKAEA Limited to build a larger and more broadly based nuclear
services company, based on UKAEA Limited's core skills, track
record and brand.
"The proposed sale will provide UKAEA Limited with a new ownership structure to help deliver its strategic plans and greater commercial focus on its operations."
Notes to Editors
About UKAEA Limited
1. UKAEA Limited is a wholly owned subsidiary within the UK Atomic Energy Authority providing 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 ("NDA") sites and nuclear project management and consultancy services in the UK and international markets.
2. 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.
UKAEA Limited's Performance
The management of UKAEA Limited has created a business that has delivered strong performance based on:
1. Participation in the fast growing international nuclear markets (the global civil nuclear market is estimated to be worth £300 billion in the period 2005-2035), offering substantial opportunities for UKAEA Limited to win project management and consultancy contracts
2. Respected international brand in the nuclear industry. Pioneering successful track record of decommissioning civil nuclear facilities, UKAEA Limited and its parent having decommissioned and safely dismantled 15 reactors and 40 radioactive facilities, more than any other company in Western Europe
3. Delivery of strong operational, financial and safety performance on its NDA sites: Dounreay, Harwell and Winfrith
4. Creation of strategic alliance with two major industry participants to address the forthcoming NDA site license competitions
5. The development from nothing of a major projects and technical consultancy business with a strong visible pipeline
6. The new global emphasis on nuclear new build as an important part of energy policy. With decommissioning advice being a critical component, UKAEA Limited is already bidding on several international new build advisory contracts
The Proposed Transaction
1. The proposed transaction will be structured as a share sale of UKAEA Limited. The business was legally separated from the UK Atomic Energy Authority on 1 April 2008. UKAEA Limited does not include fusion research at Culham, Oxfordshire nor property development at Harwell and Winfrith.
2. All interested parties should contact Greenhill for further information. It is expected the transaction should be completed towards the end of 2009.
This document does not constitute an offer, or a solicitation of an offer, to enter in to any transaction. No person shall have any right of action (except in the case of fraud) against Greenhill, UKAEA Limited, the UK Atomic Energy Authority or any other person in relation to the accuracy or completeness of the information contained in this announcement.
Greenhill & Co
Exclusive financial advisers to the UK
Atomic Energy Authority
Richard Morse
Rachel
Clark
0044 (0)20 7198 7400
Smithfield
0044 (0)20 7360 4900
John Antcliffe
Will Swan
BERR
Gemma Cook
0044 (0)20 7215 5967
