Property in Romania

Romania Aviation Firm Eyed by Buyers

Franco-German concern Eurocopter is still interested in buying Romanian helicopter and light-plane manufacturer IAR Ghimbav, according to the President of the local council.

Aristotel Cancescu, president of Brasov county council, where the town of Ghimbav lies, put the offer price at 11 million euros for a 64.89-per cent stake.

IAR Ghimbav was put up for privatisation at the end of 2006, and Eurocopter was the only company which submitted a bid. However, negotiations broke down in 2007 after delays in the privatisation process.

Last month, the State Assets Privatization Authority (AVAS) put IAR Ghimbav up for sale again, calling for final bids by June 23. Prospective buyers must submit a five-year business plan for development of the plant.

AVAS President Teodor Atanasiu said last month that IAR Ghimbav would maintain its field of activity. This followed several warnings by Cancescu that some investors interested in IAR planned to turn the company into a real estate business.

Date posted: May 10, 2008