Aerostar prepares for privatisation,
seeks international partner

June 13th, 1999

Aerostar of Romania, actively seeking international strategic investment partners, says it is close to securing a joint venture agreement with a significant Western aerospace company. Wishing to build on its years of expertise as a repair, overhaul and upgrade facility, Aerostar is studying techniques to extend the operational life of the MiG-29 fighter and to overhaul/upgrade equipment on the aircraft. Envisaging an international collaborative programme for this venture, Aerostar has made contact with potential partners. One may be Dasa, which is also offering upgrades for the Mig-29, based on its experiences with the ex-GDR aircraft now in the Luftwaffe inventory.

It is also expected that within the next three months Romania's FPS (State Ownership Fund) will announce the privatisation date for Aerostar. FPS will secure Aerostar's privatisation by direct negotiation with strategic investors who are committed to preserve the present business activities of the company, bring new markets to Aerostar and provide a significant volume of investment.

Currently Aerostar is a stock company with its share capital trading on the Bucharest Stock Exchange, 18% being held by private individuals and legal entities. The S.I.F "Moldova" investment organisation holds a further 12%, while the remaining 70% is held by the FPS.

Aerostar has a well-established and successful partnership with Israeli company Elbit Systems to jointly manage and perform the upgrade contract of 110 MiG-21 Lancers for the Romanian Air Force. Building on the success of the MiG-21 Lancer upgrade programme, Aerostar and its partner Elbit are now marketing the upgraded MiG-21bis to air forces that operate this variant of the aircraft.

REF XQQEE XQQAR