Kawasaki Heavy Industries (KHI) is taking control of its minority-owned affiliate Japan Aircraft Manufacturing (Nippi) as it streamlines development of the Japan Defence Agency's new indigenous maritime patrol and transport aircraft (P-X/C-X).
The friendly all-share transaction is due to be completed by April. Nippi shareholders will receive 1.4 KHI shares for each share held, valuing KHI's acquisition of the 74.3% of Nippi it does not already own at around ¥6.6 billion ($56 million). As a result, KHI says its aerospace sales will increase by around 10% to 22% of overall sales.
The companies have co-operated since 1964. In 1970, KHI acquired a minority stake in the aircraft parts manufacturer and maintenance provider.
KHI says full Nippi ownership will help it better manage the P-X/C-X project for which it is prime contractor. Japan hopes to use technology developed from the programme to produce a small commercial airliner.
Source: Flight International
