New Manus, Nauru operator plots exit

Spanish company Ferrovial does not expect to operate the Manus Island or Nauru detention centres in the future.

Manus Island

Manus Island Source: AAP

The Spanish company taking control of the business operating the Manus Island and Nauru detention centres has signalled it plans to step away from the offshore processing facilities in the future.

Ferrovial Services, which now owns more than 50 per cent of ASX-listed Broadspectrum, formerly Transfield, says it does not plan to stay in the business of operating offshore detention centres.

"In relation to the provision of services at the regional processing centres in Nauru and Manus province, these services were not a core part of the valuation and the acquisition rationale of the offer, and it is not a strategic activity in Ferrovial's portfolio," the company said in a statement.

"Ferrovial's view is that this activity will not form part of its services offering in the future."

Papua New Guinea has already said it will close the Manus Island detention centre after the country's Supreme Court found it was illegal, but Broadspectrum has a contract to operate Nauru until 2017

Broadspectrum's board of directors has recommended shareholders accept Ferrovial's $1.50-per share takeover offer.

It has received acceptances from 59 per cent of shareholders but needs to reach 90 per cent before it can compulsorily acquire the remainder of the company.


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2 min read
Published 19 May 2016 7:32am
Source: AAP

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