ADQ, an Abu Dhabi-based investment and holding company, has offered to combine its shareholdings in AMMROC, Etihad Engineering and GAL into Abu Dhabi Aviation (ADA) to create a global aviation MRO and services leader.
ADQ has submitted the offer to ADA to combine its full 100% shareholding of Etihad Engineering and AMMROC, as well as its 50% ownership of GAL, into ADA, with the goal of establishing a diversified aviation services and MRO business, with strategic market access and commercial relationships with the world’s largest global aircraft manufacturers and OEMs, said a statement.
The transaction is expected to create a globally competitive aviation business headquartered in Abu Dhabi to position the emirate as a world-leading hub for aviation MRO services, logistics, supply chain and advanced engineering capabilities.
The combined group will have assets of approximately AED9.4 billion (approximately $2.6 billion) with an extensive portfolio of aircraft, MRO centres and hangars.
The combined operator will capture greater synergies through integrated service offerings to aviation customers at scale with increased access to highly skilled labour, capabilities, and supply chain, said the statement.
Upon closing of the transaction, ADA will issue to ADQ a convertible instrument that would convert into approximately 652 million ordinary shares in the capital of ADA. The price at which the convertible instrument will convert into shares in ADA is AED6.14 per share.
The offer implies an equity valuation of approximately AED2.7 billion for ADA. Following completion, ADQ would own approximately 59 percent of the entire issued share capital of ADA.
Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, said: “The proposed transaction will further position Abu Dhabi as a world-leading center of aviation excellence, combining the strengths of each asset to form a global MRO and aviation services champion to capitalize on growth opportunities in the aviation industry. The proposed combination will provide a framework to investing in the future development of an advanced aviation ecosystem that supports the sustainable transformation of Abu Dhabi and the UAE’s economy for the long-term.”
If the Board of Abu Dhabi Aviation recommends proceeding with the transaction, it will be subject to shareholder and regulatory approvals, said the statement. - TradeArabia News Service
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