New MRO and services business to open in Abu Dhabi

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 centres 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.

Mohamed Hassan Alsuwaidi, managing director and chief executive officer of ADQ, said: “The proposed transaction will further position Abu Dhabi as a world-leading centre of aviation excellence, combining the strengths of each asset to form a global MRO and aviation services champion to capitalise on growth opportunities in the aviation industry. 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.”