Bombardier to sell military aviation training unit to CAE
TORONTO Jan 27 (Reuters) - Bombardier Inc said it has agreed to sell its military aviation training activities to CAE Inc, as the train and plane maker moves to reduce costs and sell assets in an attempt to ease investor concerns about a possible cash crunch.
In a release late on Monday, the Montreal-based company said the move will allow it to focus on its core businesses.
CAE Inc has agreed to acquire the unit that provides training to military pilots for C$19.8 million ($15.9 million). The deal, which is subject to governmental and regulatory approvals, is expected to close by year end.
Bombardier's debt ratings recently took a slight hit after it suspended work on its newest Lear jet and warned 2014 results would be weaker than forecast. ($1 = 1.2467 Canadian dollars) (Reporting by Euan Rocha; Editing by Jeffrey Benkoe)
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