Czech firm buys Romanian aircraft builder
Aero Vodochody, a Czech-based maker of military training aircraft, has agreed to buy a controlling stake in Romanian competitor Avioane SA in a deal worth €16.3 million ($25.9 million), a news agency said Tuesday.
Aero beat bids by Italy’s Alenia Aeronautica and a Romanian company in the sale of 81% of Avioane’s share capital by the government agency privatizing Romania’s communist-era industries, the Mediafax agency reported.
Aero plans to pay €4.2 million for the shares, €3.3 million in cash and €8.8 million in investment, the report said. Based in the industrial center of Craiova, Avioane builds a military trainer in cooperation with Israeli company Elbit Systems.
Avioane, like Aero, made warplanes when both countries were part of the Soviet bloc, but the Romanian company, founded in 1972, has struggled financially in recent years. (m&c.com)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.