Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) today nofficially announced that, on February 27, it signed a $1.4 billion contract with India for air defense systems.
Under the deal, IAI will develop and manufacture seaborne and shore-based systems against missile attack.
Part of the payment for the systems will be made during the development period, and the balance will be paid during the 66-month delivery period, which is slated to begin 90 months from the date the advance payment is received.
IAI has undertaken to procure military or aviation products and services from India, and will invest in defense companies in India up to an amount equal to 30% of the contract.
IAI stated that it delayed announcing the contract until now, because the customer informed the company that early disclosure was liable to cause material difficulties in execution of the contract, and even result in its cancellation. IAI added that it felt that this risk would be substantially reduced once the advance payment was received.
IAI said that when it learned yesterday afternoon that the deal had been reported in the foreign media, it announced the deal, even though the advance payment has not yet been received.
Published by Globes [online], Israel business news - www.globes-online.com - on March 26, 2009
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