The UK Atomic Energy
Authority seeks buyers for its commercial business, UKAEA Limited
DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2009-86)
issued by COI News Distribution Service on 30 March 2009
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