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BAE SYSTEMS TO PURCHASE VT GROUP'S SHARES IN
BVT SURFACE FLEET LIMITED
BAE Systems and VT Group today signed the agreement under which VT Group has exercised its option to sell its 45% shareholding in BVT Surface Fleet Limited (BVT) to BAE Systems (the "Transaction"). The consideration for the Transaction is approximately £346 million to be satisfied in cash.
VT Group will also inject £43 million of capital into BVT in settlement of certain other matters, including claims in respect of certain export contracts which were contributed by VT Group into the BVT business. In addition, VT Group will pay a further £4.7 million to BVT in respect of certain inter-company balances. The capital injection and the inter-company payment will take place at completion of the Transaction.
BAE Systems will receive from VT Group in cash at completion of the Transaction approximately £70 million (comprising £65 million plus accrued interest) in deferred payment for the sale on 1 July 2008 to VT Group of BAE Systems' 50 per cent. shareholding in Flagship Training Limited.
The Transaction is subject to regulatory approval and to VT Group shareholder approval. Completion is expected to take place in the fourth quarter.
Issued by:
BAE Systems plc
London
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