Chinese aircraft-maker Xian Aircraft (XAC) has signed an agreement to buy Austria's FACC, a company that makes composite parts for commercial aircraft.
FACC says XAC has signed an agreement to buy 91.25% of FACC subject to regulatory approvals that are expected to be completed by year-end.
"After the completion of the acquisition, a share capital increase will be carried out, raising shareholders' equity from the current €40 million ($60 million) to no less than €80 million."
The capital raising will help with FACC's business development, it adds.
FACC's current owner, Australian holding company ACC Kooperationen und Beteilgungen, will retain 5% equity and Stephane Ges will retain 3.75%, it says.
The Austrian company says XAC is committed to maintaining operations in Austria.
XAC manufactures China's MA60 turboprop and is a major supplier to China's ARJ21 regional jet and C919 programmes. It also makes parts for western aircraft-makers such as Airbus.
Source: Air Transport Intelligence news
