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Abu Dhabi investment and holding company ADQ has offered to combine its shares in four aviation companies in the emirate to create a global firm with assets of AED 9.4 billion ($2.6 billion).
ADQ has submitted an offer to Abu Dhabi Aviation PJSC (ADA) to merge Etihad Engineering and AMMROC, which it fully owns, as well as its 50% ownership in GAL into ADA.
The combined companies will capture synergies through integrated service offerings in aviation services and maintenance, repair and overhaul (MRO) ADQ said.
The aim is to create a globally competitive aviation business in the emirate, positioning it as a world-leading hub for MRO, logistics, supply chain and advanced engineering, the statement added.
Abu Dhabi-listed ADA confirmed it had received the offer in a statement to Abu Dhabi Securities Exchange (ADX).
The offer from ADQ implies an equity value of AED 2.73 billion for ADA, and following completion ADQ would own a 59.44% of the issued share capital of the combined group, ADA said.
The combined group would have assets of approximately AED 9.4 billion (approximately USD 2.6 billion) with an extensive portfolio of aircrafts, MRO centers and hangars, said ADQ.
CEO and managing director Mohamed Hassan Alsuwaidi said: “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, ADQ concluded.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
