File picture shows a Czech-made L-410UVP plane as it stands on tarmac at Myachikovo airfield outside Moscow.
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UGMK to Make a Flight to the Czech Republic
Urals Mining & Metal Co. (UGMK) that announced creation of a regional airline in the Urals in March won’t confine to the air traffic. It is in talks for buying out 51 percent in Czech aircraft construction company, Aircraft Industries, where it intends to acquire the jets. The deal will cost no more than $15 million, according to the sources.
The fact that UGMK is buying out a controlling stake in Aircraft Industries was reported by AFP. The seller is Czech Panco Int and it is going to keep the remaining 49 percent. Panco officials confirmed the information but refused to give the financial details. The decision to dispose of the stake was made to finance additional production and sale of regional L-410 and L-420.
UGMK declined to comment. A source familiar with the situation confirmed the negotiations but specified that no definite agreements had been attained. The company’s division, UGMK Holding voiced in March the plans to create a regional airline in the Urals and acquire ten L-410s for it.
In Aircraft Industries (former LET), they don’t disclose the deal budget. A top manager in one of Russia’s air construction companies said Panco had offered the stake to his company for $15 million. But the investments in the plant would be much higher, at least $100 million, the source said, pointing out that buying facilities for constructing the obsolete L-410 would make no sense, they would have either to develop a new model or assemble the Western jets.
www.kommersant.com
All the Article in Russian as of May 23, 2008
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