VIENNA (Reuters) - Chinese planemaker Xi’an Aircraft International (XAC) (000768.SZ) has agreed to acquire 91.25 percent of Austrian aircraft parts maker FACC, the two companies said over the weekend.
The companies declined to say how much XAC paid for the stake. FACC’s previous owners included Oesterreichische Salinen and Raiffeisen Landesbank Oberoesterreich. The deal is subject to regulatory approval and expected to close by year-end.
Upon closing, the Chinese group will inject at least 40 million euros ($58 million) in fresh equity into unlisted FACC, a supplier to aircraft makers including EADS’ Airbus EAD.PA, Boeing (BA.N) and Embraer (EMBR3.SA).
FACC almost doubled its net loss to 19.6 million euros in the financial year 2008/09 to February, while revenue rose slightly to 276.6 million euros. Operating earnings turned to a profit of 6.4 million euros from a loss the previous year.
Reporting by Boris Groendahl; editing by John Stonestreet