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ASC sale will not proceed.



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THE HON. LINDSAY TANNER MP Minister for Finance

THE HON. JOEL FITZGIBBON MP Minister for Defence

www.defence.gov.au

Thursday, 26 February 2009 021/2008

ASC SALE WILL NOT PROCEED

The Rudd Government announced today that the sale of ASC Pty Ltd, formerly the Australian Submarine Corporation will not proceed at this time.

Lindsay Tanner, Minister for Finance and Deregulation and Joel Fitzgibbon, Minister for Defence emphasised that the current uncertainty in global financial markets presented significant risks to a successful sale of the company. In addition, a sale in the short term could complicate the operations of the company given ASC is currently building the Royal Australian Navy’s Air Warfare Destroyers and likely to be considered in any future submarine build program.

Lindsay Tanner thanked the business, legal and process advisers to the sale, Lazard Carnegie Wylie, Freehills and Sparke Helmore, for their work in helping prepare ASC for sale.

Lindsay Tanner said: “It is unfortunate that the current economic climate presents significant risks to a successful sale of ASC. However, the work undertaken in preparing ASC for sale will provide valuable lessons for the Commonwealth’s roles as owner and customer in the future”.

Lindsay Tanner and Joel Fitzgibbon also thanked ASC’s Board of Directors and management team for their assistance and professionalism in preparing the company for sale.

Media contacts: Nardia Dazkiwn (Lindsay Tanner): 0418 144 690 Christian Taubenschlag (Joel Fitzgibbon): 0438 595 567