Romanian Pvt Auth Negotiates IAR Ghimbav Sale With Czech Aero Vodochody

According to the statement, AVAS is currently negotiating with Aero Vodochody on an improved offer to take over IAR Ghimbav.

“The second bidder, Marcovici Capital Ltd, was excluded from the privatization process as the documents submitted did not comply to the conditions assessed in the company’s presentation file,” the statement said.

Until September 15, Czech Aero Vodochody and Israel’s Marcovici Capital were the only two companies which submitted bids to buy AVAS’ stake in IAR Ghimbav.

Antonescu: Am ajuns, pentru Dumnezeu, să secretizăm cheltuieli pentru o călătorie cu avionul

Antonescu: Președintele nu își permite să aibă ambiții mici

AVAS put up for sale 12.2 million shares, representing 64.89% of IAR Ghimbav share capital.

The privatization process of the helicopter maker was restarted on April 21, 2008, after the sale procedure in 2006 was not completed.

The company reported 2.1 million lei (EUR1= RON3.6844) pre-tax profit in the first half of the year, four-fold higher than in the same period of 2007.

The company’s turnover in the first six months stood at RON60.9 million, 22% higher than in the corresponding period a year before.

IAR Ghimbav is majority owned by AVAS, with a 64.89% stake, followed by Labor Ministry, with a 7.35% stake, and regional investment fund SIF Transilvania (SIF3.RO), with a 4.57% stake, while the rest is distributed among other shareholders.

The company’s shares, traded on the RASDAQ market, closed at RON1.8 per share on Friday, down 9.09% on the day.

Aero Vodochody was also interested in buying Romanian airplane maker Avioane Craiova, but AVAS ceased in October the negotiations with the Czech company, because the offer’s validity period expired before Aero accepted the contractual clauses imposed by the institution.

Recently, AVAS relaunched Avioane Craiova’s privatization process, and expects offers until November 24.