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.


Share
2 min read

Published

Source: AAP

Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world