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Abu Dhabi Aviation (ADA), an aviation service provider listed on ADX, has completed the acquisition of stakes in Etihad Airways Engineering (EYE), Advanced Military Maintenance Repair and Overhaul Centre (AMMROC) and Global Aerospace Logistics (GAL), from a wholly owned subsidiary of the Abu Dhabi sovereign wealth fund ADQ, in return for shares in ADA.
Subject to regulatory approvals, 100% of the share capital of EYE, 100% share capital of AMMROC and 50% of the share capital of GAL were contributed to ADA in consideration for the issuance of a mandatory convertible instrument in the aggregate principal amount of AED 4 billion ($1.09 billion), convertible into ordinary shares in the capital of ADA, according to a statement by ADA.
The acquisition creates a “competitively positioned, vertically integrated aviation group of companies with strong capabilities in maintenance, repair and overhaul, logistics, supply-chain and advanced engineering,” a company statement read.
ADA owns a fleet of 62 aircraft, catering VVIP passenger transportation, search and rescue, crop spraying, seismic support, and firefighting in the UAE, as well as in other markets.
While EYE provides maintenance, repair and overhaul services to multiple airlines, including Etihad Airways, AMMROC operates a centre specialised in all-inclusive maintenance, repair and overhaul services. GAL, meanwhile, is a provider of maintenance, repair and overhaul services in the Middle East and North Africa region.
“The completion of this transaction makes ADA a competitive force in the aviation sector that is equipped to further strengthen Abu Dhabi’s status as a global aviation hub,” Nader Ahmed Mohamed Alhammadi, Chairman of the Board of Directors of ADA, said in a statement.
(Writing by Bindu Rai, editing by Seban Scaria)
