The Georgian Ministry of Defense (MoD) said on July 1, that it was taking over a privately-owned Tbilisi Aircraft Manufacturing (TAM) to establish “a military repair-industrial complex.”
MoD has claimed that “the initiative of merger” comes from TAM management, which currently owns 90% of the company shares; the rest is owned by the personnel.
According to the MoD announcement, TbilAviaMsheni (or Tbilisi Aircraft Manufacturing - TAM) will now turn into legal entity under public law.
“MoD is our main contractor and we think that our joint activities will be beneficial for the both sides,” Pantiko Tordia, TAM general director, said in a brief statement made a joint briefing with MoD official on July 1.
Neither Tordia nor MoD official took questions from journalists after making the announcement and details of the deal remain unclear.
“We have been cooperating with TAM for a long time already, involving using repair services of the factory. TAM’s merger with MoD will ease number of procedures,” Revaz Tcharbadze, head of MoD’s procurement department, said.
TAM was privatized by the state in November, 2004. Pantiko Tordia, general director of TAM, is among the company’s top management, which bought 90% of TAM’s shares for USD 67 million. Transaction, according to TAM website, was finalized in 2005.
TAM, which produces Su-25 (Frogfoot) ground attack aircraft, in 90s started investments in non-military related sectors. It also operates air carrier.