The Aerostar-PAS-IAROM consortium has agreed to buy the 69.99% equity stake in Aerostar held by the Romanian state ownership fund for ROL60 billion ($3 million).
Allowing for the three-year time frame for the payment and inflation, the value of the transaction could rise to more than ROL100 billion ($5.3 million).
The state ownership fund will keep a "golden share", which will entitle it to a veto right in matters affecting the defence production capability of the company.
Aerostar is a first rank supplier to the Romanian ministry of defence and holds a unique position within the Romanian aerospace industry. Since the end of 1997 Aerostar has been in a continuing process of restructuring and re-organisation.
Consortium
Under the terms of the contract the consortium, a grouping of the management and employees of Aerostar (PAS) with the private IAROM entity, has agreed to take over all the obligations and debts of the company, will not dissolve the company for 10 years and will keep its core business intact for at least five years.
Aerostar will continue its policy of international co-operation, the basis of which was laid down in programmes for the Romanian ministry of national defence.
These include the MiG-21 Lancer upgrade, DIALOG electronic communications and LAROM multiple launch rocket system.
As a result of these collaborative programmes, new affiliated companies have been created with Elbit Systems of Israel and Thomson-CSF of France.
Source: Flight Daily News