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ADQ Announces Plan to Create Global Aviation MRO Leader

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Abu Dhabi-based investment and holding company ADQ has proposed to merge its stakes in AMMROC, Etihad Engineering and GAL into Abu Dhabi Airways (ADA) to create a global aviation MRO and services leader.

ADQ has submitted an offer to ADA to consolidate its entire 100% stake in Etihad Engineering and AMMROC and its 50% ownership in GAL into ADA with the goal of building a diversified aviation services and MRO business with strategic Sexual Market Access has established a commercial relationship with the world’s largest global aircraft manufacturer and original equipment manufacturer, according to a statement.

The transaction is expected to create a globally competitive aviation business headquartered in Abu Dhabi, positioning the UAE as a world-leading hub for aviation MRO services, logistics, supply chain and advanced engineering capabilities.

The combined group will have about AED 9.4 billion ($2.6 billion) in assets, with an extensive portfolio of aircraft, MRO centers and hangars.

The combined operator will achieve greater synergies by providing integrated services to aviation customers at scale and increasing access to highly skilled workforces, capabilities and supply chains, the statement said.

Upon closing of the transaction, ADA will issue a convertible instrument to ADQ, which will be converted into approximately 652 million shares of common stock in ADA’s capital. Convertible instruments are converted into ADA shares at AED 6.14 per share.

The offer implies a stake in ADA valued at around AED2.7 billion. Upon completion, ADQ will own approximately 59% of ADA’s entire issued share capital.

Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, said: “The proposed transaction will further position Abu Dhabi as the world’s leading aviation centre of excellence, combining the strengths of each asset to form a global MRO and aviation services champion that will take the lead in the aviation industry. Growth opportunities. The proposed merger will provide a framework for investing in the future development of an advanced aviation ecosystem to support the long-term sustainable transformation of the economies of Abu Dhabi and the UAE.”

If the Abu Dhabi Airways board recommends that the transaction go ahead, it will need approval from shareholders and regulators, the statement said. – Arab Trade News Service

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