State Romanian aviation company Aerostar is possibly within three months of announcing its privatisation plans - assuming that the right partner emerges.
Speaking at the show yesterday on the Aerostar stand in Hall 5, company representative Doina-Gabriela Matanie says that now Aerostar is becoming financially stronger, with a 43% increase in sales last year, it is proving to be an interesting proposition for potential buyers.
The Romanian state ownership fund will secure Aerostar's privatisation by direct negotiation with strategic investors who are committed to preserving the present business activities of the company, bring new markets to Aerostar and provide a significant volume of investment.
Aerostar stock is quoted on the Bucharest stock exchange. Private individuals and companies own 18% of the company while an investment company holds a further 12%. The remaining percentage is under state control.
Around 40% of Aerostar's turnover is derived from exports and the company employs 4,400 people, making it one of the country's largest companies.
"We are also close to securing a joint venture agreement with a significant Western company," she said.
"We have good experience of doing this following the well-established and successful partnership set up with Israeli company Elbit Systems jointly to manage and perform the upgrade contract of 110 MiG-21 Lancers for the Romanian Air Force.
"This partnership has flourished and has led in turn to the creation of A-E Electronics, a joint stock company formed by Aerostar and Elbit Systems."
Source: Flight Daily News