Russia's United Aircraft Offers $456M To Fully Own Fighter-Maker Irkut

Moscow, Russia (AHN)- United Aircraft Building Corp. announced Monday that it plans to fully control aircraft manufacturer Irkut by offering to buy a 50 percent stake in aircraft manufacturer Irkut for $456 million.

United Aircraft, which was recently established by outgoing Russian President Vladimir Putin to help revive Russia's aviation industry, has offered to buy Irkut's 488 million shares at $0.93 per share.

Currently, United Aircraft holds a 50 percent stake in Irkut. Owners of the remaining 50 percent of its shares may accept the offer, which expires on June 11.

United Aircraft raised $252.2 million last week by selling 8.2 million new shares to the Federal Property Agency, increasing the government's stake to 91 percent. The funds will be used for developing new airplanes.

Irkut, which manufactures Sukhoi fighter jets, garnered $127 million in an initial public offering of 23 percent of the company in 2004.

In 2005, European Aeronautic, Defence & Space Co., parent of Airbus SAS, acquired a 10 percent stake in Irkut for about $65 million.