December 20, 2018 / 10:41 AM / 9 months ago

Embraer to pay out $1.6-1.7 billion in extraordinary dividends: paper

FILE PHOTO: The logo of Brazilian planemaker Embraer SA is seen at the company's headquarters in Sao Jose dos Campos, Brazil February 28, 2018. REUTERS/Roosevelt Cassio/File Photo

RIO DE JANEIRO (Reuters) - Brazilian planemaker Embraer SA (EMBR3.SA) is planning to distribute $1.6 billion to $1.7 billion in extraordinary dividends to shareholders, using proceeds from its recent deal with Boeing Co (BA.N), the Valor Econômico newspaper reported on Thursday.

Boeing in July struck a deal to take an 80 percent stake in the commercial aircraft arm of Embraer, a move expected to reshape the global passenger aircraft industry.

Under the deal, which values Embraer’s jet business at $5.26 billion according to the most recent calculations, Embraer expects net proceeds to total $3 billion.

The company is likely to announce the dividend at a shareholders meeting following the government’s approval of the deal, Valor said, without saying how it got the information.

Embraer did not provide an immediate comment.

Reporting by Gram Slattery; editing by Jason Neely

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