Govt Names Carnegie Wylie As ASC Sale Adviser
1 February 2007
Dow Jones International News

CANBERRA (Dow Jones)--The Australian government Thursday named Carnegie, Wylie and Co. as the business adviser for the planned sale of ship and submarine builder ASC Pty. Ltd.

Legal firm Freehills was also appointed legal adviser for the sale, Finance Minister Nick Minchin said in a statement.

The government plans to sell ASC, formerly known as Australian Submarine Corp., via a trade sale by the second half of 2008. [ 01-02-07 0312GMT ]

Minchin said the government would name a process adviser to the sale by the end of March.

The government plans to sell ASC through a competitive tender trade sale, overseen by the Department of Finance and Administration in conjunction with the sale advisers and the Department of Defense.

ASC is the preferred builder for the Navy's air warfare destroyers and has an obligation to provide through-life support for the Navy's Collins-class submarines, after winning the contract to build six of the vessels in 1987.

Restrictions on potential ASC buyers, including a 49% cap on foreign ownership, will be imposed by the government, which will also scrutinize the financial viability and industrial experience of ASC suitors.

Australian shipbuilder Austal Ltd. (ASB.AU) has expressed interest in ASC in partnership with U.S.-based General Dynamics Corp. (GD).

Australia's privately-owned defense contractor Tenix Pty. Ltd., the prime contractor for the Royal Australian Navy's A$7 billion ANZAC ship project, has also said it's interested in ASC.

-By Barbara Adam, Dow Jones Newswires; 61-2-6208-0901; barbara.adam@dowjones.com