Romania announces details of privatisation tender for Aerostar

Published: 10/5/1999

DaimlerChrysler Aerospace, Lockheed Martin, Thomson and Israel's Elbit Systems are to participate in the October 29th tender for the sale, by Romanian state ownership fund SOF, of 70% of Aerostar's shares. The shares will be sold for a price of 60,000 leu ($3.63) with a deadline for submissions of 28th October. Aerostar (www.concise.org 26th June 1999) has been close to Elbit for some time and has cooperated on the upgrade of the Romanian Air Force's MiG-21 in the MF Lancer programme and has discussed offering a MiG-29 package to other operators in Eastern and Central Europe. Thomson also have a relationship with the company through a JV called Aerothom, which manufactures a range of defence based products for the domestic market, but with the intention of developing exports. The SOF intends to retain a controlling stake in the company through a golden share, given that its core business is manufacturing and repairing equipment for the armed forces. SIF Moldova holds 11.236% of the shares and the remaining shares are owned by coupon holders from the Roman privatisation process. The average price of Aerostar shares in thin volume on the traded market is 3,850 Lei ($0.23) per share. In the first two quarters of 1999 Aerostar turned over 115.9 billion leu ($7.2m) earning a gross profit of 6 billion leu.

Article ID: 938