Embraer's shareholders today approved the proposed strategic partnership between Boeing and Embraer during an Extraordinary General Shareholders' Meeting held at the company’s headquarters in Brazil.
At the meeting, 96.8% of all valid votes cast were in favour of the transaction, with the participation of approximately 67% of all outstanding shares.
Shareholders approved the proposal that will establish a joint venture made up of the commercial aircraft and services operations of Embraer. Boeing will hold an 80 per cent ownership stake in the new company, and Embraer will hold the remaining 20 per cent.
The transaction values 100 per cent of Embraer's commercial aircraft operations at $5.26 billion and contemplates a value of $4.2 billion for Boeing's 80 per cent ownership stake in the joint venture.
Embraer shareholders also agreed to a joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 per cent stake in the joint venture, with Boeing owning the remaining 49 per cent.
Embraer’s defence and executive jet business and services operations associated with those products would remain as a standalone publically-traded company. A series of support agreements focused on supply chain, engineering and facilities would ensure mutual benefits and enhanced competitiveness between Boeing, the joint venture and Embraer.
“Our shareholders have recognized the benefits of partnering with Boeing in commercial aviation and the promotion of the multi-mission airlift KC-390, as well as understanding the opportunities that exist in the executive aviation and defence business,” said Nelson Salgado, Embraer Executive Vice President of Finance and Investor Relations.
Boeing and Embraer announced in December 2018 that they had approved the terms for the joint ventures and the Brazilian government gave its approval in January 2019. Shortly thereafter, Embraer's board of directors ratified its support for the deal and definitive transaction documents were signed. The closing of the transaction is now subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions, which Boeing and Embraer hope to achieve by the end of 2019.
Embraer will continue to operate the commercial aviation business and the KC-390 program independently until the closing of the transaction.
Embraer and Sierra Nevada Corporation have won a contract to supply 12 A-29 Super Tucano light attack aircraft to the Nigerian Air Force. The A-29 Super Tucano aircraft are turboprop light air support aircraft meant for attacking and reconnaissance of lightly-defended enemy territory
Lockheed Martin C130J and Airbus A400 may find their way into Portugals plans to acquire military transport aircraft if the nation decides to abandon Embraer KC-390 purchase due to high pricing. The Chief of Portuguese Air Force General Staff (CEMFA) General Manuel Rolo said in the parliament on Wednesday that the state does not want to see beyond 830 million euros ($945 million)
Embraer and Boeing reach consensus on terms of the strategic aerospace partnership in which Boeing will acquire an 80 percent ownership stake in the joint venture for $4.2 billion
Embraer has completed Troop unloading, evacuation by hatch and evacuation tests through the front and rear doors of the KC-390 airlift. The tests were held at Brasília Air Force Base, Brazil
Boeing and Embraer are preparing to launch a joint venture to promote and develop markets for the multi-mission medium airlift KC-390 while expecting all regulatory approvals for their commercial joint venture by 2020. Under the terms of the proposed partnership, Embraer will own a 51 percent stake in the joint venture and Boeing will own the remaining 49 percent
EmbraerX, Atech and Harris Corporation are developing Urban Air Traffic Management (UATM) concept to control electric vertical take-off and landing vehicles (eVTOL) in an urban setting. “Urban Air Traffic Management (UATM) concept ensures equitable and safe access to urban airspace for a broad spectrum of aircraft, including conventional helicopters, fixed wing aircraft and eVTOLs," said Antonio Campello, President & CEO of EmbraerX
The joint venture (JV) between Embraer and Boeing will not involve the A-29 Super Tucano turboprop light attack aircraft, Embraer said in a statement Saturday. In Brazil during the last week of February, Embraer's shareholders
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