MOSCOW. Nov 29 (Interfax-AVN) - The European Aerospace and Defense Systems Corporation (EADS) plans to procure up to 10% of additional-issue shares of the Irkut Research and Production Corporation by mid-2005, Vadim Vlasov, head of the EADS affiliate office in Russia, told Interfax-Military News Agency.
According to him, the feasibility of the transaction was discussed by EADS and Russian Ministry of Industry and Energy officials in Moscow on November 25. "The Russian officials said at the meeting that the Russian government welcomed the transaction within the framework of applicable laws," he noted.
EADS plans to conduct negotiations with Irkut within the next three months, with the negotiations to involve financial consultants and lawyers, tasked with working out the mechanism of the transaction. According to Vlasov, they will evaluate Irkut's assets, define its stock and its value. "We want to procure 5 to 10% of shares," he clarified.
The transaction is expected to be completed in early summer 2005, after Irkut issues additional shares, pending the decision of its shareholders, Vlasov said.
"The transaction is quite possible," Stanislav Naumov, aide to the minister of industry and energy, told Interfax-AVN.
"EADS's intention proves that the Russian aircraft industry can attract investments in the international market," he emphasized.
Irkut specializes in manufacturing SU-30 Flanker and SU-27 Flanker fighters, as well as the BE-200 amphibious aircraft. The company comprises a number of Russia's flagship aircraft manufacturers and designers, including the Irkutsk Aircraft Production Association (IAPO), the Taganrog-based Beriev Aircraft Research and Production Association (TANTK), and the Yakovlev Design Bureau.
EADS is one of the world's largest aerospace and defense systems manufacturers. Its turnover in 2003 amounted to 30.1 billion euros.