Czechs buy Avioane Craiova for 16 million euros

Czech AERO Vodochody, held by private equity fund Penta Investments, will take over the majority interest in aircraft manufacturer Avioane Craiova, after the State Assets Resolution Authority (AVAS) deemed its financial bid worth 16.3 million euros as the best. “The privatisation committee will soon negotiate with the winning bidder the clauses of the sale-purchase contract for 80.9% of Avioane Craiova’s share capital,” AVAS announced yesterday. Avioane Craiova is the only manufacturer of military aircraft in the Romanian aeronautic industry and of the training aeroplane IAR 99 SOIM. The Authority also received bids from Alenia Aeronautica (Italy), AERO Vodochody and INAV Bucharest. The Czechs’ bid stands at 16.3 million euros, 4.1 million euros of which account for the price paid for the majority interest in Avioane Craiova and 3.3 million euros for working capital. The company will also commit to making 8.8 million-euro investments, half of which will take place in the first year since takeover of Avioane Craiova. AERO Vodochody is the leading manufacturer of military training jets, according to AVAS. The total production of the company stands at more than 11,000 aircraft. It has also built over 150 Sikorsky S-76 helicopters since 2000. The Czech company had US giant Boeing as shareholder for a while, which invested 29 million dollars in Aero Vodochody in 1998. The Americans dropped their 35% share in the Czech aircraft maker in 2004.