Vector Aerospace Corp. [RNO] and European Aeronautic Defense and Space Co. (EADS) have entered into an exclusivity agreement, the companies said yesterday.
Any transaction is subject to the finalization of due diligence and negotiations with respect to definitive transaction documentation and other customary conditions, each company statement said.
Additionally, there is no assurance that the negotiations will result in a binding offer being made for the shares of Vector Aerospace Corporation.
Neither Vector Aerospace nor EADS intend to make further announcements or comments unless circumstances warrant it.
Vector was asked by Market Surveillance on behalf of the Toronto Stock Exchange to disclose the current state of the review of strategic alternatives with the objective of increasing shareholder value, something the company previously announced.
As part of the process of reviewing its strategic alternatives, Vector said in its statement a special committee of the Board of Directors sought expressions of interest from a wide variety of parties. Several non-binding expressions of interest were received. After reviewing them, the company entered into an exclusivity agreement with EADS N.V.
Vector Aerospace Corp. is an independent provider of aviation repair and overhaul services. Through facilities in Canada, the United States, the United Kingdom and Africa, Vector provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. Vector also provides information technology solutions to international customers.