Mr. John Mark Taylorasked the Secretary of State for Trade and Industry when Rover Group expects to complete the sale of its Australian operating subsidiary, Jaguar Rover Australia.
§ Mr. Giles ShawI understand that Rover Group has announced that it has sold its Australian operating subsidiary, JRA Limited, to a new consortium company, JRA Holdings Ltd. The consortium comprises JRA management, Rover Group and Jaguar and a group of institutional investors led by Citicorp Capital Investors Australian Ltd. and the Byvest Management Buy-out Group.
As part of the agreement Rover Group and Jaguar will each subscribe 20 per cent. of the equity of the new holding company. The management unconditionally holds 15 per cent. of the equity, which could be increased to 25 per cent. if certain performance targets are met over the next five years.
The business of JRA will be unchanged following the sale.
Following the completion of the sale of JRA, and notwithstanding Rover Group's minority shareholding in the new holding company, the Government will accept no further responsibility for ensuring the obligations of the company are met.