Lockheed Martin has sold its 25% stake in Chinese heavy maintenance company Guangzhou Aircraft Maintenance Engineering (GAMECO) to existing shareholder Hutchison Whampoa (China), which gains management control.
Guangzhou-based GAMECO says Hutchison acquired Lockheed Martin's holding late in 2002, lifting its stake to 50%. China Southern Airlines, China's largest carrier, retains its 50% ownership.
General manager Bob Watson, who was only given the job by Lockheed Martin early last year to replace Dan Lange, has been replaced by Thomas Tsiang, Hutchison's appointee. Tsiang, who has been deputy general manager and chief accountant of GAMECO since 1998, says that "GAMECO's operation and business will not be affected by this shareholding transaction".
Lockheed Martin held its shares through subsidiary Lockheed Martin Aeronautics Service International. Hutchison Whampoa (China) is a wholly owned subsidiary of Hong Kong-based Hutchison Whampoa.
The US company began looking for a buyer for its 25% stake early last year. Industry sources said at the time that it was concerned about the investment costs resulting from GAMECO's move in October this year to the New Baiyun International Airport. The airport, due to open towards the end of this year, is being built outside Guangzhou to replace Baiyun International Airport, where GAMECO is based.
In April, Lockheed Martin tentatively agreed to sell its shares to Singapore Airlines subsidiary SIA Engineering, but the transaction was blocked by Hutchison. GAMECO says only that Lockheed Martin decided to sell out due to a "corporate strategy change".
It adds that the GAMECO joint venture agreement gives shareholders the first right of refusal on the holding of another partner if one decides to sell.
Source: Flight International
