SEPI Sociedad Estatal de Participaciones Industriales

• The Directorate-General for Competition of the European Commission has made a favorable statement on the case submitted by the Government of Spain

The European Commission (EC) has authorized SEPI’s and AIRBUS’ rescue plan for ALESTIS Aerospace, a first level provider for AIRBUS located in Seville, announced the Directorate-General for Competition of the European Commission on its website.

The Chairperson of the Spanish state-owned industrial holding company Sociedad Estatal de Participaciones Industriales (SEPI), Mr. Ramón Aguirre, had already stated some days ago his “highest confidence” on the decision which would finally take the European Commission on the rescue plan for ALESTIS Aerospace. These statements were made by SEPI’s Chairperson last July 8th, 2014 in Seville, after holding a work meeting with the Government’s Delegate in Andalusia, Ms. Carmen Crespo; during this meeting a number of issues of interest for this region were dealt about, mostly regarding the companies NAVANTIA, AIRBUS and DEOLEO.

Mr. Aguirre also mentioned then that SEPI was waiting for the imminent pronouncement of the European Commission on the file submitted by the Government of Spain for being able to start with the actions envisaged in the agreement between SEPI and AIRBUS. This agreement sets the terms and conditions for the entry of the state-owned holding company into the shareholding of ALESTIS Aerospace, as well as the structure and working of its corporate governing bodies, and the commitments which they will assume for making this possible, with the final goal of guaranteeing the feasibility and future of the company.

For Mr. Aguirre, “the green light from the European Commission to this deal will make possible to carry out in a totally guaranteed way the road map which was agreed between SEPI and AIRBUS for carrying out the shareholding reorganization of the aeronautical company, which will finally contribute to guaranteeing the future of this factory in Andalusia'.

Agreement between AIRBUS and SEPI

The European decision about the validity of the agreements reached makes possible the future feasibility of the company ALESTIS. According to them, AIRBUS will have the Company’s operating control in order to guarantee the implementation of the Feasibility and Reorganization. On its part, SEPI will get involved in the Company’s management and governance, and will be present in its Board of Directors and in the remaining committees.

In order to make possible the agreement’s development, the Ministry of Finance and Public Administrations authorized at the end of last year the settlement submitted by ALESTIS and which entailed an extension of the payment of the debt, which amounts to 176 M€, both in its capacity as a common creditor and with regard to its privileged credit, extending the maturity of its loans in seven years from the original date for the repayment of its loans, maintaining the loan interest free during its term. On its part, the Ministry of Industry, Energy, and Tourism will disburse around 19 M€ from the financial year 2013 and which correspond to the collaboration agreement which it has with ALESTIS regarding the program for the development of the Airbus A350 XWB aircraft, confirming the continuity of this agreement, regardless of the Company’s shareholding structure.

It must be highlighted that, once the authorization from the European institutions for the entry into force of this agreement has been obtained, SEPI will submit to the Council of Ministers the proposal for being able to enter into ALESTIS’ social capital.

Equally, it has been agreed a reorganization of ALESTIS’s social capital, beginning with the acquisition by AIRBUS of the shareholdings which Alcor and Corporación Cajasol have in the Company. AIRBUS will also exercise its purchase option on ALESTIS’ shareholding participations which are held by the Sociedad para la Promoción y Reconversión Económica de Andalucía (SOPREA) on October 1st, 2014, in keeping with the agreement concluded by both entities.

Later, once takes place SOPREA’s exit from ALESTIS’ social capital, SEPI will subscribe and disburse a capital increase through a cash contribution amounting to 13.5 M€, in exchange for which it will receive a shareholding participation in ALESTIS representing 24.3% of its capital.

The shareholding reorganization will entail the final exit of Alcor, Corporación Cajasol and SOPREA, and the company’s shareholding structure will be made up by AIRBUS (62%), SEPI (24%), and Unicaja (14%).

About ALESTIS

ALESTIS is an airframes supplier of Airbus (both commercial and military). In the case of Airbus-Commercial, it supplies parts and components for, among others, the A380, A330, A320 and A350 aircrafts. Among the Airbus Military programs are included those for the CN235/C295 and A400M. It is also a supplier for Embraer and Boeing. It has its head office in Seville, and has seven production facilities, of which six are located in Spain and one in Brazil. Its workforce is made up by around 1,600 employees.