GE Equity to buy 30% in aircraft parts maker

NEW DELHI: GE Equity is picking 30% stake in the Chennai-based aircraft and spacecraft parts maker Kerns Aero Products for Rs 10 crore, said a person with direct knowledge of the transaction. The deal would value Kerns Aero at Rs 33.3 crore and help fund its expansion plans across the country.

Kerns Aero Products will issue 10.35 lakh mandatory convertible preference shares of Rs 10 each at a premium of Rs 87 to GE Equity Capital, representing around 30% of the expanded capital. Kerns Aero was formed in 2007, with the US-based Kerns Manufacturing Corporation owning a stake of 25%, the Indian promoters Shivkumar Reddy Group holding 40% and the Babu Group having the remaining 35%.