Fleet Aerospace Corp. on Friday proposed a...

Fleet Aerospace Corp. on Friday proposed a complicated transaction that would merge two of the Canadian company’s U.S. subsidiaries with San Diego-based Langley Corp. The St. Catherine, Ontario-based company that already owns 49.925% of Langley’s outstanding shares would increase its stake in Langley to 88% should the deal be completed.

Terms of the deal were revealed to Langley board members Friday. Fleet hopes to merge its Ohio-based Aeronca and Delaware-based Engineered Magnetics subsidiaries into Langley in exchange for 4.5 million shares of Langley stock.

According to Fleet’s proposal, the deal would only be completed if Langley’s stock remains at least $6 a share for 20 days before conclusion of the merger. Fleet’s stock has traded at about $7 a share in recent weeks.

Fleet acquired 675,000 shares, or 49.925%, of Langley’s outstanding stock in mid-1987.

Langley manufactures housings used by the Navy to protect sensitive electronic devices. Fleet and its U.S. subsidiaries manufacture aircraft, radar, satellite and sonar components.