• Civmec and Luerssen announce progress on Heads of Agreement for ownership transfer
• Revised effective date for transfer set for on or before 1 July 2025
• Service Level Agreement established to implement program efficiencies and cost reductions

Civmec Limited (ASX:CVL, SGX:P9D) has provided an update on the Heads of Agreement for the transfer of ownership of Luerssen Australia Pty Ltd to Civmec. The Heads of Agreement, announced in October 2024, outlines the framework for Civmec to acquire all of NVL's shareholding in Luerssen Australia, including its assets, employees, and licenses. Luerssen Australia is responsible for building six Arafura Class Offshore Patrol vessels for the Royal Australian Navy under the SEA 1180 contract. Civmec has made positive progress with the due diligence process, and the parties have continued to explore opportunities to maximize efficiency and synergies on the SEA 1180 project while working closely with the Commonwealth to secure consent. The parties are now working towards a revised Effective Date for the transfer of ownership to be on or before 1 July 2025, which will ensure sufficient time for necessary preparations and enhancing operational efficiencies to ensure a seamless transition. In the meantime, the parties have entered into a Service Level Agreement to immediately implement program efficiencies and cost reductions. Under this agreement, Civmec Construction & Engineering Pty Ltd will provide Luerssen Australia with shipbuilding services and operational support, allowing the parties to combine their capabilities effectively and begin realizing the benefits of their collaboration without delay.

The successful transfer of ownership will ensure the continued design and construction of the Arafura Class Offshore Patrol vessels at the Osborne South shipyard in South Australia and Civmec's facility in Henderson, Western Australia.