The State Government has today entered into an agreement to sell all its shares in Scope Global, its international development business, to Palladium.
Announcing the signing of the share sale agreement, Treasurer Rob Lucas said it is appropriate for the State to divest its wholly-owned interest in Scope Global to both minimise the Government’s exposure to operational risks, while allowing the company – which employs about 60 people in Adelaide and a further 110 internationally – to expand under private ownership.
The international development business sector is an extremely competitive sector with potentially significant risks for shareholders of companies competing for business and contracts.
It is worth noting the former Labor government also made a decision to sell its shareholding before ultimately deciding not to conclude the sale.
Founded in Australia in 1965, Palladium works with governments, corporations, and investors in more than 90 countries.
Within the Asia Pacific region, it operates in similar markets to Scope Global.
Palladium has advised that they will retain the Adelaide office.
“Scope Global has had a successful record in the past two years, through a combination of new contract wins and supporting the Commonwealth’s Department of Foreign Affairs and Trade (DFAT) during the COVID pandemic,” Mr Lucas said.
“However, it is appropriate to now capitalise on the timing of these factors and act in the taxpayers’ long-term interests.”
Ron Erasmus, Palladium Managing Partner said: “Palladium and Scope are both passionate about driving sustainable change. Much of the work we do overlaps, and the rest is a perfect complement. We look forward to welcoming our new colleagues to Palladium.”
As part of the sale process the company has declared a special one-off dividend, which will be paid to the State Government prior to the sale’s completion.
Due to the commercial nature of the transaction the sale price will not be disclosed at this stage.