29 Apr 2005
Further to the announcement on 28 January 2005, BAE Systems plc ("BAE Systems") announces the completion of the EuroSystems transaction agreed with Finmeccanica SpA ("Finmeccanica").
The EuroSystems transaction comprised:
- The merger of BAE Systems Avionics Limited and Galileo Avionica SpA to form a new Avionics business owned 75 per cent. by Finmeccanica and 25 per cent. by BAE Systems. At completion BAE Systems received the adjusted amount of 374 million in cash and will receive a further adjusted amount of 268 million upon the exercise after May 2007 of BAE Systems' put option or the exercise at any time of Finmeccanica's call option over the 25 per cent. stake.
- The dissolution of the 50/50 AMS joint venture of BAE Systems and Finmeccanica. At completion BAE Systems paid Finmeccanica an equalising amount of 50.5 million in cash to account for the difference in value between AMS's UK and Italian operations. In addition, Finmeccanica has acquired AMS's UK Air Traffic Management business for 6.5 million cash and the assumption of debt.
- The sale of BAE Systems' UK Communications business to Selenia Communications Limited, a wholly owned subsidiary of Finmeccanica, for 25.4 million in cash.
The transaction has achieved BAE Systems' and Finmeccanica's mutual goals of securing control and clear management responsibility for these significant European defence industry businesses. BAE Systems will now form an Integrated System Technologies business by combining the capabilities of AMS's UK operations and BAE Systems' C4ISR Networked Systems and Solutions business.
For further information, please contact:
Richard Coltart, BAE Systems Head of News: +44 (0) 1252 383074
