BAE Systems restructures Saudi Arabian businesses

30th Jun 2014 07:47

Defence group BAE Systems is launching a shake-up of its businesses in Saudi Arabia.BAE said it was bringing together its stakes and those of partner Riyadh Wings Aviation Academy in 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 continuing to hold a majority stake.BAE said the restructuring would improve the growth prospects of the Saudi Arabian businesses and it would not significantly affect underlying earnings in the near-term.Chief Executive Ian King 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 demonstrates the continued commitment to increase Saudi participation in our business in support of stated Saudi national priorities."PW