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SKW Schwarz advises Sierra Nevada Corporation on investment by OHB SE and AFK Enterprise in Deutsche Aircraft
Deutsche Aircraft Holdings (DAH), the sole owner of Deutsche Aircraft Group companies, recently secured an important minority equity investment from OHB and AFK’s joint company DAH Beteiligungsgesellschaft mbH.
The investment comes from a joint venture between aerospace company OHB SE and investment company AFK Enterprise AG, and will propel development of new green aviation technologies including the D328eco™, an environmentally friendly version of the acclaimed Do328® short-haul passenger aircraft manufactured by Deutsche Aircraft GmbH. Under the agreement, the investors have the potential to acquire additional ownership up to a majority at a later point in time.
Deutsche Aircraft’s D328 series of aircraft is founded on the proud heritage of Dornier and Deutsche Aircraft is the holder of the Do328® type certificate. With new propulsion systems, latest-generation avionics and more seats, the D328eco will set new standards for environmentally friendly short-haul flying. Deutsche Aircraft is also studying a variety alternative fuels and future climate-neutral propulsion systems as part of its product roadmap. The Do328 is the last commercial aircraft to date to have been developed and built entirely in-house by a German company - and this will also be the case with the D328eco.
The equity stake in DAH is subject to approval from the German Government which is currently supporting development of the D328eco with a high volume development cost loan and in addition, supports development of clean aviation initiatives at Deutsche Aircraft. The transaction is anticipated to close during the first quarter of 2023 following regulatory approvals and other customary closing conditions .
The team of SKW Schwarz, led by partner Dr. Kolja Petrovicki, comprehensively advised Sierra Nevada Corporation on this cross-border transaction, together with Cohen & Gresser (U.S. Law, UK Law) and Carey Olsen (Cayman Islands Law).
Counsel on Transaction: Dr. Kolja Petrovicki, LL.M. (UPenn), (Corporate/M&A, Lead Partner), Dr. Oliver M. Bühr (Corporate/M&A), Dr. Tatjana Schroeder (Restructuring), Alexander Möller, Sabrina Hochbrückner (both Employment Law), Stefan Skulesch (Tax Law) (all Frankfurt); Dr. Klaus Jankowski Maria Rothämel (both Public Law, both Berlin), Heiko Wunderlich (Tax Law); Eva Bonacker (Merger Control) (both Munich)
About SKW Schwarz
SKW Schwarz is an independent German law firm with 130 lawyers, four offices, and a common claim: We think outside the box. As a full-service law firm, we advise in all relevant areas of business law. Including in an area that is particularly important for businesses: the future. We analyze, create clarity, and advise today in the essential legal fields of tomorrow.
About AFK Enterprise
AFK Enterprise AG, based in Switzerland, the industrial arm of the AFK Kumar Family Office, operates as a private owned single family office mandated with the preservation, management and growth of the AFK Kumar family’s wealth and assets. AFK makes strategic investments across a wide range of markets, focused on equity and growth capital. With the international outlook towards investment, AFK actively pursues and engages in a broad variety of investment opportunities in high-tech in Europe, US, Middle East, India, Asia as well as in emerging markets.
About OHB SE
OHB SE is a German space and technology group and one of the leading independent forces in the European space industry. With many years of experience in the implementation of demanding projects, OHB SE is excellently positioned to face international competition and can offer its customers a broad portfolio of innovative products in its three business units: Space Systems, Aerospace and Digital.The company employs around 3,000 people and generates a total revenue of around one billion euros.
About Deutsche Aircraft GmbH
Deutsche Aircraft is Germany’s new purpose-driven OEM. Founded on the heritage of aircraft pioneers, Deutsche Aircraft’s new D328eco™ aircraft is being developed to deliver significant improvements in operational and maintenance costs as well as reductions in the overall carbon footprint. This is in line with its vision and strategic road-map to support a more sustainable future for aviation. The D328eco will offer maximum flexibility being able to operate on existing aviation fuel, as well as compatible with 100% H2-PtL. The aircraft will be assembled in the paperless Final Production Line (FAL) at Leipzig/Germany. All parameters are in high demand in the current aviation environment and there already is an increased interest in the D328eco from potential customers and partners.