Holding Group Plans To Buy Up Public Stock

Aero-News has learned Mooney Aerospace Group, Ltd. announced Tuesday that MAG Holding Corp has filed a certificate of ownership and merger with the Delaware Secretary of State to merge MAG Holding with and into Mooney Aerospace -- meaning Mooney will soon cease to be a publicly-held company.

MAG Holding is already the holder of more than 90 percent of the outstanding stock in Mooney Aerospace. With the merger, Mooney Aerospace common stock will also cease to be publicly traded on the Over-the-Counter Bulletin Board in the near future.

As a result of the merger, all outstanding shares of Mooney Aerospace common stock not held by MAG will be cancelled, and converted into the right to receive a payment of $0.35 per share, subject to such common stockholders' appraisal rights under Delaware law.

The company will soon mail formal notices of the merger to persons who held stock in the company at the time of the merger, including instructions on how to receive payment.

So... how will this affect Mooney, the airplane manufacturer? Sources familiar with the deal tell ANN the Mooney Airplane Company will continue to be a wholly-owned subsidiary of Mooney Aerospace.

Will this mean business-as-usual for the planemaker, which has seen its fortunes take a marked turn for the better in recent years... or are they positioning the company for change?

Stay tuned.

FMI: www.mooney.com