EADS acquires 24% stake in Indian Aero for Rs 131 cr

New Delhi: European aerospace giant EADS is acquiring a 24% stake in Indian Aero Ventures (IAV), promoted by ex-BPL mobile chief Rajeev Chandrasekhar, for Rs 131.2 crore.
The joint venture, in which the $52-billion company is investing, will be a holding company for aviation infrastructure, including development of greenfield private airports. The JV will invest Rs 1,000 crore in India through separate subsidiaries and bring in other strategic partners for each venture.
Among the activities in which the JV would be involved include: airport development and operation, maintenance, repair and overhaul (MRO) of aircraft and engines, aviation training academy, manufacture of trainer aircraft and aircraft interiors. According to a source, EADS would acquire the 24% stake through fresh issue of IAV shares.
Given the deal amount and the shares to be issued, EADS will acquire the stake at an average price of Rs 866 per share, as against the face value of Rs 10 per share. It is, however, learnt that EADS would bring in the funds through multiple tranches.
10/01/08 Vivek Sinha & Chaitali Chakravarty/Economic Times

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Categories: Foreign Jan 2008, Merchant Airports Jan 2008, New Jan 2008