30th Jun 2014 07:48
LONDON (Alliance News) - BAE Systems PLC Monday said it plans to reorganises its interests in Saudi Arabia into one company to enhance its working relationship with Riyadh Wings Aviation Academy LLC, its partner in the region.
The two companies will bring together their training, electronics and IT systems engineering in Saudi Arabia into a single holding company, which will be majority owned by FTSE 100-listed BAE. Riyadh Wings will progressively acquire a 49% stake in the holding company which will be called OMC.
OMC will consists of a 98% interest in Saudi Development and Training, a technical training organisation and capability provider to BAE Systems; a 50% interest in Advanced Electronics Co, an electronics manufacturing, systems integrating and repair maintenance services company; and a 90.6% interest in International Systems Engineering, a company providing systems engineering development, information technology and information based systems capabilities
"No material near-term impact on underlying earnings for the group is expected to arise from these transactions", BAE said in its statement
BAE Systems shares were quoted flat at 431.70 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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