Civmec, on Jan 10, announced that it made positive progress with the due diligence for the transfer of ownership of Luerssen Australia, a shipyard in Western Australia.
The update comes after the company signed a non-binding heads of agreement with NVL B.V. & Co. KG of Bremen Germany outlining the framework for the transfer of ownership in October 2024. Luerssen Australia is responsible for building six Arafura Class Offshore Patrol vessels for the Royal Australian Navy under the SEA 1180 contract.
The heads of agreement includes the transfer of all NVL's shareholding in Luerssen Australia to Civmec , encompassing all assets, employees, and licences.
The successful transfer of ownership will ensure the continued design and construction of the Arafura Class Offshore Patrol vessels at the Osborne South shipyard in South Australia and Civmec's facility in Henderson, Western Australia.
In its Jan 10 update, Civmec says both parties have been actively exploring ways to enhance efficiency and synergies for the SEA 1180 project while collaborating closely with the Commonwealth to obtain consent.
The parties are now working towards a revised effective date; the transfer of ownership is expected to be on or before July 1.
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Amid the due diligence and consent process, Civmec Construction & Engineering and Luerssen Australia have entered into a service level agreement to enable the former to provide the latter with shipbuilding services and operational support. Civmec's shipbuilding and operational support under the agreement will continue until the successful transfer of ownership or the end of the agreement’s term.
Shares in Civmec closed flat at $1.07 on Jan 10.
