Embraer shareholders approve Boeing tie-up during extraordinary general meeting
The proposed strategic partnership between Boeing and Embraer was approved earlier by Embraer’s shareholders during an extraordinary general shareholders meeting.
The event was held at the company’s headquarters in Brazil.
At the special meeting, 96.8 per cent of all valid votes cast were in favour of the transaction, with participation of approximately 67 per cent 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.
“This ground-breaking partnership will position both companies to deliver a stronger value proposition for our customers and other stakeholders and create more opportunities for our employees,” said Paulo Cesar de Souza e Silva, president of Embraer.
“Our agreement will create mutual benefits and boost the competitiveness of both Embraer and Boeing.”
Boeing and Embraer announced in December that they had approved the terms for the joint ventures and the Brazilian government gave its approval in January.
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.
“Approval by Embraer’s shareholders is an important step forward as we make progress on bringing together our two great aerospace companies.
“This strategic global partnership will build on Boeing’s and Embraer’s long history of collaboration, benefit our customers and accelerate our future growth,” said Dennis Muilenburg, Boeing chairman.