Czech government to weigh Aero sale options

21.09.2006 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

PRAGUE, Sept 21 (Reuters) - The Czech government will weigh several options how to proceed in the sale of military jet maker Aero Vodochody next Wednesday, Industry and Trade Minister Martin Riman said on Thursday.

The maker of the sub-sonic L-159 jets, sold so far only to the Czech army, owns an airstrip near Prague, which has lured bidders into the sale tender because they may turn the airstrip into Prague's second civilian airport.

Riman, who came in this month as a member of the new right-wing minority cabinet, said he preferred an option where the airport would be sold by Aero as a separate asset, while the company itself would only be sold at some point afterwards.

"What bidders are interested in is the airport," Riman said. "This will win time for further steps guaranteeing that civilian production is maintained and commitments toward the army are met," he said.

The other options are to continue the sale tender for the whole firm, including the airport, or to split the company in two separate entities, the airport and the jet maker.

Riman said he would decide on how to proceed after receiving bids due by next Wednesday.

The bidders, mostly private equity groups, are Aero Kilcullen Consortium, Benson RPG, Cesky Letecky Prumysl, PPF/J&T, HTC Holding, Oakfield, ECO-Investment and Slovacke Strojirny.

The new cabinet is expected to lose a confidence vote on Oct. 4, but it may remain in office for weeks after that while political talks on another cabinet go on. ((Reporting by Petra Vodstrcilova, writing by Jan Lopatka, editing by ; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

Keywords: ARMS CZECH AERO

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