Romanian Privatization Auth Extends Again Avioane Craiova's Offer Deadline

"AVAS decided to extend the validity of the offer with 30 more days, according to the provisions of Law no. 137/2002 and the norms applying this normative act. The authority took the decision following the request of the Office for State Participations and Privatization in Industry OPSPI (subordinated to the Economy Ministry- e.n.)," AVAS stated Tuesday.

 

AVAS mentioned that, during the mandate, it negotiated the airplane maker’s sales with the only bidder, Italy’s Alenia Aeronautica, that submitted both the initial and the final improved offer, as the institution requested.

 

Alenia Aeronautica expressed its interest in continuing the negotiation for Avioane Craiova as of July 15, 2009, the institution stated.

 

In March, the Government authorized AVAS to continue the privatization of Avioane Craiova, the mandate ceasing if the privatization procedure were ceased by March 31, 2009, at most.

 

The deadline in the airplane maker’s sale was extended several times, the last deadline being set up for June 30. 

 

After a failed attempt in 2008, AVAS resumed the privatization on October 20, 2008. Italy’s Alenia Aeronautica was the only bidder in the takeover of Avioane Craiova, after submitting its offer by January 30, the deadline set up by AVAS.

 

The Economy Ministry owns an 80.97% stake in Avioane Craiova.

 

Avioane Craiova ended year 2008 with 15.5% lower revenues, at 21.2 million lei (EUR1=RON4.2067), and 15.2% higher expenses, at RON37.7 million. Thus, the company’s losses doubled in 2008 at RON16.5 million, from RON7.6 million a year before.

 

The plant has a share capital of RON2.28 million split up into 915,484 shares with a face value of RON2.5.