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shareholders Abu Dhabi Airways The issuance of mandatory convertible bonds worth AED 4,003,280,000 (USD 1.09 billion) to ADQ Aviation and Aerospace Services LLC has been approved following the sale of ADQ Aviation and Aerospace Services LLC’s MRO, engineering and logistics business to Abu Dhabi Aviation. The deal initiates a merger in which ADQ Aviation will acquire a controlling stake in Abu Dhabi Airways.
The approval was obtained at a general meeting of shareholders in Abu Dhabi on April 27.Transaction sees ADQ Aviation transfer 100% of the issued share capital of Advanced Military Maintenance Repair and Overhaul Center LLC (AMMROC), 100% of the issued share capital Etihad Airways Engineering LLC (EYE), and 50% of the issued share capital of Global Aerospace Logistics LLC (GAL) to Abu Dhabi Airlines.
The bonds will be converted into 652,000,000 Abu Dhabi Airways shares at a conversion ratio of 6.14 per new share. Abu Dhabi Airways said the ratio was the result of financial and technical valuations. Each new share, which will be deemed paid in full, will be worth AED1 (US$0.27) and will increase Abu Dhabi Airways’ issued share capital to AED1,096,787,200 (US$298.7 million).
trade effective merger Abu Dhabi Airways merges into ADQ Airlines. Upon completion of the transaction, ADQ Aviation will own 59.44% of the combined group’s share capital. ADQ Aviation is a wholly owned subsidiary of Abu Dhabi Development Holding Company PJSC sovereign wealth fund. Abu Dhabi Airlines owns and operates 58 aircraft, including 51 rotary-wing and seven fixed-wing aircraft. Its activities cover aviation medical work, offshore support for the oil industry, search and rescue, VVIP flights, general aviation and third party maintenance support. The Abu Dhabi government owns 30% of Abu Dhabi Airlines.
The merger between Abu Dhabi Airways and ADQ Airlines is expected to be completed this quarter and the new shares will be listed on the Abu Dhabi Securities Exchange (ADX) by June 30.
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