Aer Lingus expects €470 million from IPO
Offering Aer Lingus is expecting to raise around €470 million ($597 million) from an initial public offering (IPO) that will see it listed on the Irish and London stock exchanges. The long-awaited flotation will be formed of 72.7 million existing and 208.4 million newly issued shares. A further 42.2 million shares will be available for over allotment, but the Irish government plans to retain at least 25.1% of the airline. Aer Lingus confirms an indicative share price range of €2.10 to €2.70, meaning it expects to generate net proceeds of around €470 million from the listing. A final share price is expected to be fixed by 27 September.
Cobham plans growth after solid results
Strategy UK-based manufacturer Cobham is planning further acquisitions after recording solid half-year results (see graph). "The group will seek further acquisitions that enhance leadership positions across the high technology growth segments of the aerospace and defence markets," Cobham says. But the company warns that further divestments could also be on the cards: "Cobham will not hesitate to dispose of companies whose performance or expectations do not meet the group's criteria." Cobham also says it is on target to increase research and development (R&D) spending to 25%.
Safran considers selling mobile unit
Divestment Safran is reported to be considering selling its mobile phone unit, hoping to raise as much as €200 million from the sale, despite the significant losses it made last year. The company recently made changes to its senior management team ahead of a planned strategy review. Safran posted a 36.4% drop in net income for the first half of 2006, as a strong aerospace performance failed to offset declines in other units. Aerospace propulsion operating profits rose by 16.4% to €227 million, while aircraft equipment profits grew by 3.5% to €117 million. But operating losses in the firm's defence security and communications branches cut operating income to €231 million, a 35% decline.
Goodrich expands UK maintenance facility
Support Goodrich is expanding its maintenance support services centre in Prestwick, Scotland, to allow it to increase maintenance, repair and overhaul work from Europe, the Commonwealth of Independent States, the Middle East and Africa. The company plans to grow the facility, which was opened in 2004, from 120,000ft2 (11,100m2) to 250,000ft2.
Meggitt buys air conditioning specialist
Acquisition Meggitt is paying up to $32 million to acquire Keith Products, a supplier of compact air conditioning systems for business jets and general aviation aircraft. The UK-based company is to pay $30 million on completion, with a further $2 million payable two years later subject to the achievement of agreed sales targets in 2006 and 2007. Chief executive Terry Twigger says the move is "an important step in the development of our Meggitt Thermal Systems group".
Finmeccanica forecasts further growth
Results Finmeccanica is forecasting continuing growth thanks to a "positive trend in new orders", in particular in its AgustaWestland helicopter division and from its stake in ATR regional aircraft. The Italian manufacturer has posted increased first half earnings before interest and tax - €305 million compared with €251 million in the same period last year.
Source: Flight International
