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Ministry of Defence

Answer

Llew Smith: To ask the Secretary of State for Defence pursuant to the written ministerial statement of 5 December, Official Report, column 85WS, on QinetiQ, if he will set out the calculation of the adjustments made in the assets and liabilities of QinetiQ prior to setting its sale price; if he will set out the final conditions to which reference is made; and if he will place in the Library a copy of the Carlyle Group bid to become a strategic partner in QinetiQ. [87551] Dr. Moonie: As outlined in my statement of 5 December, Official Report, column 85WS, the transaction values QinetiQ at around 500 million. As is conventional, this valuation was done on a debt-free/ cash-free basis. The actual receipt to the Ministry of Defence will therefore be adjusted to take account of a number of factors including: any debts owed by the company, any liabilities for which provision currently exists in the accounts, any cash held by the company and working capital to the extent this is above/below the company's normal level. The precise details of the adjustments are commercially sensitive. As is normal in any major transaction there are a number of conditions that must be satisfied between signing and formal completion. These include: laying before Parliament of a Departmental Minute describing any contingent liabilities from the transaction; receipt of EC commission merger clearance; local authority searches and other legal issues relating to property and confirmation of the purchaser's financing arrangements. Certain other conditions exist but as these are commercially sensitive I am withholding them in accordance with Exemption 13 of the Code of Practice on Access to Government Information. I am also withholding a copy of The Carlyle Group bid in accordance with Exemption 13 of the Code of Practice on Access to Government Information.

Secondary information

Type

Written question

Reference

396 c722-3W; 87551

Session

2002-03

Subjects

Assets Liability Partnerships Sales Valuation QinetiQ Carlyle Group

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk