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The new valuation is 11 percent more than the $4.75 billion
offered when the deal involving Embraer's commercial division
was originally announced in July.
Embraer expects it will receive $3 billion after accounting for
closing costs.
It is unclear whether any part of the difference relates to
debt. Embraer had some $4 billion in total debt, according to
its most recent financial statements at the end of September.
Embraer's board Monday moved to present the deal for approval to
the Brazilian government, which holds veto power over important
business decisions at the plane maker. But a source close to the
negotiations said they were optimistic about the prospects.
It was unclear how long the government could take to make a
decision, but President-elect Jair Bolsonaro and his aides have
spoken favorably of a Boeing-Embraer deal. Bolsonaro begins his
presidency on Jan. 1.
The deal is also subject to shareholder approvals at both
Embraer and Boeing.
Separately, Embraer announced details of a joint venture with
Boeing intended to promote its signature defense plane, known as
the KC-390. Under that partnership, Embraer will have a 51
percent stake in the operation.
Embraer was up 4.5 percent in early-morning trading in Sao
Paulo.
(Reporting by Marcelo Rochabrun; Editing by Kirsten Donovan and
Adrian Croft)
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