Former Alinta managing director Bob Browning has accepted a United States-based role with shipbuilder Austal, but for the next four months will continue working with Macquarie Bank on a bid for his old employer.
Former Alinta managing director Bob Browning has accepted a United States-based role with shipbuilder Austal, but for the next four months will continue working with Macquarie Bank on a bid for his old employer.
Austal announced yesterday it had appointed Mr Browning chief executive of its US operation, which over the next few years is expected to become much larger than its Australian business.
At a press conference to announce his new job, Mr Browning was reluctant to comment on the bidding process surrounding Alinta, which was sparked when he and former Alinta chairman John Poynton started working with Macquarie Bank on a management buyout.
Alinta has subsequently commenced a full auction process, with several groups reported to be preparing bids.
Messrs Poynton and Browning resigned from Alinta's board amid controversy over conflicts of interest, but Mr Browning did confirm that the MBO group - which also includes three senior Alinta executives - was still working with Macquarie.
"I'm actually precluded from being able to talk about that so I'd rather stay away from it, but I can tell you that the MBO group is working actively with Macquarie to put in a bid," Mr Browning said.
When asked if he was still part of the MBO team, Mr Browning said "I am yes, through mid July, I am absolutely focused on (it).
"I have been focused on supporting the bid team and advising them through that date.
"I still think that what is being developed is exciting and will be good for Alinta shareholders, but I have elected once that process is fulfilled I will move to Austal."
Commenting on the planned transition, Austal executive chairman John Rothwell said Mr Browning would fulfil his contractual commitments to Alinta.
"He will complete his contract up to mid July and up to that time Bob will continue to advise the Macquarie consortium on the MBO issues."
Mr Browing, who is from the United States, has stated previously that he and his wife always intended to return to the US to be closer to their families.
He said the idea of working for Austal in the US was first discussed about three years ago, after he joined the Austal board as a non-executive director.
"John and I first started talking about this maybe two-and-a-half, maybe three years ago," Mr Browning said.
"We didn't really speak a whole lot more about that until recently, in the last several weeks we have been able to put together this offer and I am really excited about it."
"This opportunity presented itself, it was just too irresistible," Mr Browning said.
Mr Rothwell said Mr Browning would step down from the Austal board to ensure it maintained a reasonable balance between executive and non-executive directors.
Austal is currently building four ships at its construction yards in Mobile, Alabama, and Mr Rothwell is confident about the growth opportunities, particularly from supplying new vessels to the US navy.
"Austal in the United States has the best growth potential in the company," Mr Rothwell said.
"We are now at about 1,000 people in the US and we anticipate that will be working up to about 3,000 people."
This growth means that, over the next five years, the US operation will become substantially larger than its Australian operation, which employs 1,300 people.
"We will get growth here but we won't get it at the rate the United States is growing."
However he expects Australia will remain the "powerhouse" of the company.
"The company is an Australian listed company, the board lives here and I feel confident the powerhouse will remain here."
This story will be updated throughout the day
The full text of a company announcement is pasted below
The Executive Chairman of Austal Limited, Mr John Rothwell AO, today announced the appointment of Mr Bob Browning as Chief Executive Officer of Austal USA, effective mid August this year.
Mr Rothwell said Mr Browning would add substantial experience to Austal's existing executive team, and assist the company achieve its strategic growth plans across all sectors of the business.
Mr Browning has been a non-executive Director of the Company since September 2003. In his new executive position with the Company, he will be based in Mobile, Alabama, where Austal opened its US shipyard in 1999. He will retire as a Director upon commencing in his new role .
"We are pleased to welcome Bob to the executive team. His track record in Australia and the US reflects his ability to deliver strong shareholder value and corporate growth across a range of industries," Mr Rothwell said.
"In his most recent capacity, Bob took a company with a market capitalisation of around $350 million at the time of his appointment in 2001, to its present position as one of Australia's leading energy infrastructure companies, with a value now of over $7 billion.
"His experience in strategic development, sales, infrastructure management and team building will assist us achieve our goal to be a leading supplier and manufacturer of military and commercial vessels in the US."
Mr Rothwell said Mr Browning would focus initially on Austal's Littoral Combat Ship program, the New Joint High Speed Vessel program which has a requirement for up to 12 vessels, and to explore opportunities for other US Defense programs.
Mr Browning will move from Perth to Mobile once he finalises his current commitments to his present employer, but no later than mid-July.
"I am very fortunate to have been offered this opportunity with Austal," Mr Browning said.
"Through my position as a non executive Director, I have come to appreciate first-hand the company's potential depth of market reach and unique product offerings, particularly in the US.
"As a developer of businesses and systems, I hope to add valuable input to the talented team who have proudly progressed the company to its present stage.
"It is the opportunity to make a great company better which most excites me. This has been a priority for me throughout my career and I am happy to be joining another dynamic group of people at Austal to assist them in achieving the same result.
"My wife and I have always intended to eventually move back to the US to be closer to our sons and our broader family. So the timing is perfectly suited to our planning.
"I have been very fortunate to have worked with an impressive group of people while I have lived in Australia. This opportunity provides me with a better ability to maintain those connections into the future."
