SAN DIEGO — The Canadian company that already owns 49.9% of Langley Corp. said Thursday that it would solidify its grasp on the San Diego-based aerospace parts manufacture by exchanging two of its independently owned U.S. subsidiaries for additional shares of Langley stock.
St. Catherine, Ont.-based Fleet Aerospace made the offer in a letter delivered to Langley officials earlier this week. The proposed swap is subject to the execution of a definitive letter of agreement and the receipt of a "fairness opinion" from an independent financial adviser, according to a Langley official.
Fleet, Langley's largest single shareholder, has five representatives on Langley's nine-member board of directors.
The company wants to exchange its Ohio-based Aeronca subsidiary and its Delaware-based Engineered Magnetics for an undetermined number of Langley shares.
Spokesmen at Fleet and Langley declined to say where the stock would come from. However, an industry analyst suggested that Langley would issue new stock if the deal is approved during a shareholders meeting.
Fleet manufactures components for aircraft, radar equipment, satellites and sonar devices. Langley manufactures electronic components for use in naval and aerospace products.