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Quote 1 :
BAE restructures its businesses in Saudi Arabia
June 30/14
BAE and its major Saudi partner Riyadh Wings restructure their local business activities into a single joint venture firm, OMC. BAE will retain 51% of OMC, with more to start, while Riyadh wings share will progressively acquire their way to 49%. The partnership will then control :
- 96% of Saudi Development and Training (SDT), a technical training outfit that sub-contracts to BAE.
- 90.6% of International Systems Engineering (ISE), which performs systems engineering development, I.T., and related activities.
- Just 50% of Advanced Electronics Company (AEC), which performs electronics manufacturing, systems integration and repair and maintenance. AEC works for clients in the defense, telecom, and manufacturing sectors.
Saudi businesses account for about $3 billion in BAE’s revenue per year. The new structure is expected to improve efficiencies, while deepening BAE’s local presence.
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The defence giant is reorganising its interests in Saudi Arabia into one company to enhance its relationship with its partner in the Kingdom, Riyadh Wings
By Rebecca Clancy
12:42PM BST 30 Jun 2014
Defence giant BAE Systems has announced plans to reorganise its interests in Saudi Arabia into one company to enhance its relationship with its partner in the kingdom, Riyadh Wings.
Europe’s largest defence contractor said the two companies will merge their activities in training, electronics and systems engineering in Saudi into a single company. Riyadh Wings will progressively acquire a 49pc stake in the holding company with BAE continuing to hold a majority stake of 51pc.
Ian King, BAE’s chief executive, said: “BAE Systems has worked successfully with Riyadh Wings for a number of years and they are well placed to partner with us in aviation-related activities.
“This enhancement of our relationship with our valued partner demonstrates the continued commitment to increase Saudi participation in our business in support of stated Saudi national priorities.” ]
The Telegraph
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Quote 2 :
BAE Systems announces enhanced partnership with Riyadh Wings
Monday 30 June 2014
BAE Systems plc (‘BAE Systems’) announces a reorganisation of its portfolio of interests in a number of industrial companies in the Kingdom of Saudi Arabia and an enhancement of its existing relationship with Riyadh Wings Aviation Academy LLC (‘Riyadh Wings’).
Through a number of transactions, the reorganisation will bring together shareholdings of the BAE Systems group and Riyadh Wings in Saudi companies specialising in training, electronics and IT systems engineering under a single holding company. Riyadh Wings will progressively acquire a 49% stake in the holding company with BAE Systems continuing to hold a majority stake. The reorganisation is expected to enhance the growth prospects of these businesses in the Kingdom of Saudi Arabia. No material near-term impact on underlying earnings for the Group is expected to arise from these transactions.
Ian King, Chief Executive, BAE Systems plc, commented: “BAE Systems is a longstanding partner of the Kingdom of Saudi Arabia, with an ongoing commitment to support the national agenda of developing an indigenous defence industry, supporting skills and technology development and increasing local employment. BAE Systems has worked successfully with Riyadh Wings for a number of years and they are well placed to partner with us in aviation-related activities. This enhancement of our relationship with our valued partner demonstrates the continued commitment to increase Saudi participation in our business in support of stated Saudi national priorities.”
Completion of the transactions to effect the reorganisation is conditional on the satisfaction of certain regulatory approvals.
Notes to editors :
The reorganisation will bring together certainshareholdings of the BAE Systems group and Riyadh Wings in Saudi companies under a single holding company, OMC. OMC will comprise:
- 98% interest in SDT (Saudi Development and Training) – a technical training organisation and a capability provider to BAE Systems;
- 50% interest in AEC (Advanced Electronics Company) – an electronics manufacturing, systems integration and repair and maintenance services company. AEC works for clients in the defence, telecoms and manufacturing sectors.
- 90.6% interest in ISE (International Systems Engineering) – A company providing systems engineering development, Information Technology and information based systems capabilities.
BAE Systems
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