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Victorian defence company DefendTex has confirmed its investment agreement with Brazil’s Avibras Indústria Aeroespacial is expected to conclude later this month.
The Dandenong South-based company is continuing its negotiations with Brazilian missile manufacturer Avibras to secure significant missile manufacturing capability in Australia.
DefendTex has previously announced it is seeking a $70 million loan from Export Finance Australia for the acquisition of advanced missile manufacturing capability from Brazil, enabling a vital knowledge transfer to Australia, according to a corporate statement released on 13 June.
The acquisition is seeking to secure knowledge on how to manufacture long-range strike missiles and cruise missiles in Australia, according to the company.
“Avibras Indústria Aeroespacial and DefendTex remain committed to concluding the acquisition process, in accordance with the investment agreement signed by the parties,” according to a statement published by DefendTex on 29 June.
“The investment agreement which remains in force, will conclude on the 30th July (“closing” of the transaction) allowing a capital injection into Avibras Indústria Aeroespacial from this date and resumption of operations.
“The parties will release any new information as it arises.”
Australian Deputy Prime Minister Richard Marles, speaking at a press conference at Osborne Shipyard in Adelaide on 21 June, has previously stated the government is not speculating on the negotiations.
The Deputy PM also ruled out commenting on reports that Chinese state-owned defence manufacturer Norinco was also interested in acquiring Avibras.
DefendTex’s negotiations to acquire the Brazilian missile manufacturer are a rare opportunity for a veteran-owned Australian company to secure more than 60 years of guided weapon technology, intellectual property and expertise, according to DefendTex chief executive officer Travis Reddy.
