AVAS broke negotiations on Avioane Craiova.

30/09/2008 | After AVAS announced breaking the negotiations on Avioane Craiova acquisition, Aero Vodochody expressed great disappointment and pointed out several incorrect facts in the AVAS news release.

After AVAS announced breaking the negotiations on Avioane Craiova acquisition, Aero Vodochody expressed great disappointment and pointed out several incorrect facts in the AVAS news release.

“We have negotiated with AVAS for over two months in order to reach the agreement in the interest of Avioane Craiova and its employees. We have reiterated our business plan centered around further development of the aviation production in Avioane Craiova and also our long-term plan to create a CEE aerospace holding, which the company should have become an important part of,” reaffirmed Igor Hulak, President of Aero Vodochody. “We were very glad about the announcement of our winning bid this July. Although we have used all possible opportunities to explain our standpoints and business plan fundamentals, backed by the extensive experience we have both in aviation production and the revitalization process, I am very sorry to say that our proposals were not accepted,” he added.

The news release of AVAS from today shocked the representatives of Aero. Aero was interested in prolonging the term of the tender, which represented one of the possibilities, AVAS could have chosen. „We wanted to go on in the negotiations,“ confirmed Igor Hulak.

Moreover, AVAS mentions untrue information in its news release and accuses Aero of breaking principles of democracy and free economy, which the representatives of Aero have never been warned of by AVAS during the negotiations. Aero firmly states that during the negotiations it has never required anything contradicting the applicable laws or tender procedure. As confirmed by its reputable Romanian legal advisers who assisted during the negotiations, Aero's proposals have always been in full conformity with the Romanian privatization legislation and standard practice in worldwide acquisition transactions. Its legitimate requests in no case may be considered as breaking any rules of democratic country or free economy market. (E.g. guarantees in the period between contract signature and transfer of rights represent standard contents of an acquisition contract, even in case of sale of a profitable company. Ensuring that Aero finds the company in the same state as within the due diligence is in the case of a continually worsening state of a company also standard. The contract being part of the tender from the very beginning is not true as well. It included proposal for the contract which was to be negotiated. And Aero negotiated intensively.)

„Let me send a message to the employees of Avioane Craiova that we came with good intentions and were looking forward to realizing our plans together. I wish Avioane Craiova healthy and successful future, which the company surely deserves,“ added Igor Hulak.
In Romania, Aero is also interested in the tender for IAR Ghimbav and strongly believes that the result of the negotiations on Avioane Craiova will not influence the tender and its offer will be assessed with the same weight as all other competing offers.

AERO Vodochody a.s. focuses on development, production, sales and support of aircraft and aerostructures in both civil and military aviation technology, following the tradition of Aero – Aircraft Factory (*1919), ranking among the oldest aviation producers in the world. Aero has well-established cooperation with leading aerospace manufacturers – Sikorsky Aircraft Corporation (S-76C helicopter), Alenia Aeronautica (C-27J Spartan center wing box), Latecoere (Embraer 170/190 subassemblies), Spirit Aerosystems (B767 fixed leading edge kits), EADS (A320/340 subassemblies), etc. Aero is currently the largest aviation technology producer in the Czech Republic and historically the largest producer of jet training aircraft in the world. Aero’s Vodochody’s long term aim is to build a new aerospace holding, based in the Central-Eastern Europe, thus strengthening its position on the market of aerostructures, reaching interesting projects on the first-tier supplier level. Aero Vodochody sees great growth potential in the aerostructures business, confirmed by interest shown in negotiations with its current as well as potential customers.