Highlights
- Proposed combination of Etihad Engineering, AMMROC and GAL with Abu Dhabi Aviation to create a globally competitive Aviation Services and Maintenance, Repair & Overhaul (MRO) business primed for future growth
- Combined operator to capture greater synergies through integrated service offerings to aviation customers at scale with increased access to highly skilled labor, capabilities, and supply chain
ADQ, an Abu Dhabi-based investment and holding company, has submitted an offer to Abu Dhabi Aviation PJSC (ADA) (ADX: ADAVIATION) 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.
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 would have assets of approximately AED 9.4 billion (approximately USD 2.6 billion) with an extensive portfolio of aircrafts, MRO centers and hangars.
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 AED 6.14 per share. The offer implies an equity valuation of approximately AED 2.7 billion for ADA. Following completion, ADQ would own approximately 59 percent of the entire issued share capital of ADA.
If the Board of Abu Dhabi Aviation recommends proceeding with the transaction, it will be subject to shareholder and regulatory approvals.
About ADQ
Established in 2018, ADQ is an active global sovereign investor with a focus on critical infrastructure and supply chains. As a strategic partner to the Government of Abu Dhabi, ADQ invests in the growth of business platforms anchored in the Emirate that deliver value to local communities and long-term financial returns to its shareholder. ADQ’s expanding portfolio has a total book value of USD 225 billion (as at 30 June 2024) and encompasses companies across numerous core sectors of the economy, including energy and utilities, transport and logistics, food and agriculture, and healthcare and life sciences.
For more information, visit adq.ae or write to media@adq.ae. You can also follow ADQ on Instagram, LinkedIn, and X.
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