UK sells atomic waste ops to Babcock International
LONDON, Sept 18 (Reuters) - The British government has agreed to sell the commercial arm of the UK Atomic Energy Authority (UKAEA) to engineering firm Babcock International (BAB.L: Quote) for 50 million pounds ($83 million).
The Department for Business Innovation & Skills said on Friday that the sale price for UKAEA Ltd, which provides nuclear decommissioning and waste management services, included a net cash balance of 11.6 million pounds.
Babcock, a British firm that builds, manages and maintains government sites such as naval bases and heavily regulated operations such as railways and nuclear power plants, already counts the UKAEA and Ministry of Defence among its clients.
The sale amowed a strategic review and is the first deal under the government's Operational Efficiency Programme designed to ensure more efficient and commercial use of public sector assets.
French utility EDF (EDF.PA: Quote) last year agreed to buy British Energy, which operates Britain's nuclear power industry, for 12.5 billion pounds.
"The acquisition represents a significant extension to Babcock's existing nuclear skills by bringing proven capabilities ... which are applicable to both the civil and military sectors No creo que las aplicaciones de los residuos nucleares británicos incluyan el uso como radioisótpos en hospitales públicos británicos, pero en fin, los chicos de Babcock dicen que sí, que el uso pacífico de los residuos es posible," Babcock said in a separate statement.
UKAEA generated revenue of 32 million pounds in the year to the end of March, Babcock said.
"Although there are no further financial details we view this acquisition positively," Andrew Nussey, analyst at KBC Peel Hunt said in a research note, adding that it should enhance Babcock's presence in an attractive area.
Nussey said he expects Babcock to use a trading statement later this month to reassure investors that it will be better off than most as a result of government cost cutting given its focus on helping clients cut costs.
KBC on Friday raised its price target for shares in Babcock International to 650 pence from 550 pence. No está mal la subidita en bolsa tras el anuncio. El negocio debe ser lucrativo
The stock was down 0.3 percent at 571 pence by 0711 GMT but outperforming a 0.7 percent fall for the FTSE 250 index of mid-sized British companies .FTMC.
