Dual-listed construction and engineering services provider Civmec P9D Limited and Naval Vessels Lürssen of Bremen, Germany (NVL) have entered into a non-binding heads of agreement for the transfer of ownership of Luerssen Australia to Civmec.
According to an Oct 15 release, Luerssen Australia’s sole business focuses on building six Arafura-class offshore patrol vessels for the Royal Australian Navy under the existing SEA1180 contract with the Australian Department of Defence.
Upon completion of the agreement, NVL is set to transfer all its shareholding in Luerssen Australia to Civmec, which includes all assets, employees, and licences.
The group says the transfer will ensure the “uninterrupted design and build” of the arafura class offshore patrol vessels at the Osborne South shipyard in South Australia and the Civmec-owned facility in Henderson, Western Australia.
Currently, the proposed ownership change of Luerssen Australia is subject to the consent of the Commonwealth.
The group adds that it will “immediately begin engaging” with the Commonwealth in the required administrative approval process, with a target completion date of Dec 31.
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The “immediate priority” of both parties is to agree on a framework for the interim period in which Luerssen Australia and Civmec will cooperate in managing the SEA1180 project, reads the release.
Jim Fitzgerald, executive chairman of Civmec, says: “The acquisition of Luerssen Australia is a natural step for Civmec as a sovereign Australian shipbuilder with world class shipbuilding facilities and an experienced shipbuilding workforce. Having worked on the project since 2018 we’re confident in our ability to execute the remaining work scope and ensure a smooth transition for all stakeholders.”
Tim Wagner, chairman of Luerssen Australian and CEO of NVL, adds: “We’re very confident in Civmec’s ability to finish the remaining works on the SEA1180 project and NVL will ensure they are supported by us until Civmec’s successful completion of the project.”
Shares in Civmec closed 3 cents lower, or down 2.8%, at $1.04 on Oct 15.
