10 July 2008
Update 11/07/08: Thielert’s administrator, Dr Kubler, has responded to Diamond’s actions (see below) by suggesting that Diamond was withdrawing on a ‘pretext’. Diamond would have seen the details it required, he says, once they had signed the confidentiality agreement.
“Possibly,” he says, “Diamond have had to recognize that the bidding process is only meant for prospective buyers that are seriously interested. Diamond’s actions clearly serve the purpose of derogating Thielert’s reputation in the naive assumption to be able to subsequently purchase Thielert far under value.”
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Diamond Aircraft has said that it will not be part of the bidding process for Thielert Aircraft Engines (TAE).
The aircraft manufacturer, a large part of whose fleet is fitted with Thielert engines, was expecting to be a leading bidder for the company when it was put up for sale following insolvency proceedings. Those insolvency proceedings began on 1 July, following which the administrator contacted up to 50 organisations which had expressed an interest in buying Thielert. This process would include signing a confidentialilty agreement.
It is this confidentiality agreement and the accompanying Summary Description of TAE which Diamond blames for its withdrawal of interest. According to the company, the Summary Description ‘in Diamond’s opinion, withholds relevant facts regarding the TAE engines, the TAE customers and the competitive market forces. The restrictions of the Confidentiality Agreement effectively preclude the obtaining of factual and objective information about TAE and its engine development and production, that is vital to the due diligence process regarding the valuation of TAE and the evaluation of the business risks.’
Referring to the disagreements which have been ongoing between the administrator and Diamond, the company says ‘The insolvency administrator is continuing his pattern of release of only partial information. Diamond will not participate in such a process.’
Diamond has also recently announced that it is ‘agressively pursuing’ certification of both Lycoming and its own Austro diesel engines, to be fitted in new aircraft and for retrofitted into old airframes.
