Ferrovial Services, which owns more than 50% of ASX-listed Broadspectrum, formerly Transfield, says these services were not a core part of the valuation

This article is more than 4 years old

This article is more than 4 years old

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.



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Ferrovial Services, which now owns more than 50% of the 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.



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“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% of shareholders but needs to reach 90% before it can compulsorily acquire the rest of the company.



Shen Narayanasamy, the executive director of No Business in Abuse and the human rights director of GetUp , is now in Europe meeting investors and financial backers of Ferrovial, lobbying against the company becoming involved in Australia’s offshore detention regime.

“It looks as if Ferrovial has seen the error of its ways and is trying to back away from the legal and financial liabilities that have been so apparent in the commercial operation of these illegal camps,” she said.



“Ferrovial has clearly recognised the risks of owning such a severely compromised outfit are just too burdensome. The big question now is when will Ferrovial close the camps.”

– Australian Associated Press contributed to this story