Banner parent Fairchild set for buyout
OWNERSHIP Banner Aerospace parent company Fairchild is poised for a management-led buyout that could return it to private ownership. Fairchild says FA Holdings, a company led by its chairman and chief executive Jeffrey Steiner and Phoenix Group chairman Philip Sassower, has offered to acquire in cash all of its outstanding stock for $2.73 per share. The proposal comes soon after Fairchild terminated chief financial officer James Fox's contract.
Air China slashes IPO size on weak demand
PRIVATISATION Air China has slashed the size of its domestic initial public offering (IPO) and priced the shares at the low end of the offer range as a result of weak demand. The airline was planning to issue 2.7 billion new shares and said this month that it aimed to price them between 2.75 yuan ($0.35) and 2.95 yuan each, potentially raising 7.97 billion yuan, or $1 billion. But demand has been weaker than expected and the airline has reduced the size of the issue to 1.64 million shares, priced at 2.8 yuan each.
IAI looks to Europe and USA
RESULTS Israel Aircraft Industries (IAI) is set to acquire companies in Europe and the USA to enhance capabilities in these markets, says president Itzhak Nissan. Nissan's target is to reach annual sales of $4 billion by 2010: "At this point we will have a backlog of $9 billion." IAI's net profit for the first six months of 2006 was $75 million, compared with $25 million for the same period in 2005, on sales of $1.3 billion, $200 million higher year-on-year. IAI's order backlog reached $7 billion by 30 June, compared with $5.6 billion a year earlier.
Private equity group snaps up Avio
SALE Private equity group Carlyle and manufacturer Finmeccanica have agreed to sell Italian aerospace propulsion specialist Avio to UK investment firm Cinven Group in a €2.57 billion ($3.3 billion) deal. Finmeccanica has agreed to reinvest immediately in Avio alongside Cinven. Finmeccanica had earlier outlined its interest in maintaining a stake in the company even if the shareholder structure changed. It will buy back a 15% stake in Avio and holds an option to acquire up to 30%. Subject to regulatory approval, the deal is expected to close in October.
Doncasters forecasts US aerospace boost
EXPANSION UK-based forgings and castings manufacturer Doncasters is looking to expand manufacturing capacity in the USA as part of its ambition to achieve up to 30% aerospace sales growth over the next three years, says chief executive Eric Lewis. The company is committed to US growth, and its purchase by Dubai International Capital (DIC), which was finalised earlier in the year, has not changed this, says Lewis. "DIC is absolutely committed to an acquisition strategy - almost certainly in North America," he says. He says the change in ownership will also open up doors in the Middle East.
Reims Aerospace takeover plan delayed
OWNERSHIP The start of French manufacturer Reims Aerospace's €3 million ($3.9 million) plan for a takeover by its 240 employees has been delayed until October after local authorities requested more details and asked current shareholder, Luxembourg-based private investment group Leithanien Investment, to set out a plan to get the company out of administration when the plan was presented at the end of July.
Source: Flight International
