BAE Systems could net windfall from Air Astana float

BAE Systems (LON:BAES) stands to net a multi-million windfall from the flotation of the national airline of Kazakhstan.

President Tokayev of Kazakhstan recently announced that Air Astana, in which BAE has a 49% stake, would pursue an international initial public offering next year – possibly in London.

The stake dates back to a botched defence technology deal more than 20 years ago but could now land the UK defence manufacturer an unexpected gain.

The British company put in $8.5 million to co-fund the launch of Air Astana in 2002 as part of an attempt to sell radar systems to the Kazakhs.

That defence deal fell apart under pressure from Russia, however, and BAE was left with the Air Astana stake, which today sits in its books with a valuation of £63 million.

Shares were down 0.6% in London at 1,061.50p.