Today's Edition
ABU DHABI (WAM)
Abu Dhabi Aviation (ADA), a leading aviation service provider headquartered in Abu Dhabi, has successfully completed a transaction for the acquisition of stakes in Etihad Airways Engineering (EYE), Advanced Military Maintenance Repair and Overhaul Centre (AMMROC) and Global Aerospace Logistics (GAL) from a wholly owned subsidiary of ADQ, an Abu Dhabi-based investment and holding company, in return for shares in ADA.
This creates a competitively positioned, vertically integrated aviation group of companies with strong capabilities in maintenance, repair and overhaul, logistics, supply chain and advanced engineering.
ADA owns and operates a fleet of 62 aircraft, catering to increasing demand for VVIP passenger transportation, search and rescue, crop spraying, seismic support and firefighting in the UAE as well as in other markets.
The company also has a longstanding track record of supporting companies in the oil sector in the Middle East and across the world, with more than one million flight hours deployed over the past five decades.
After acquiring the relevant regulatory approvals, 100 percent of the share capital of EYE, 100 percent of the share capital of AMMROC and 50 percent of the share capital of GAL were contributed to ADA, in consideration for the issuance of a mandatory convertible instrument, in the aggregate principal amount of approximately Dh 4 billion, convertible into ordinary shares in the capital of ADA.
All three companies transferred to ADA’s portfolio will add a broad range of value-added services to ADA’s proposition:
EYE provides maintenance, repair and overhaul services to multiple airlines including Etihad Airways, one of the UAE’s national carriers headquartered in Abu Dhabi, with over 2,000 employees working out of aircraft hangars covering 42,000 sqm.
AMMROC operates a centre specialised in all-inclusive maintenance, repair and overhaul services ranging from engineering solutions and technical training to supply chain management, modification and upgrade services for more than 35 different aircraft types.
GAL is one of the largest providers of maintenance, repair and overhaul services in the Middle East and North Africa region, employing over 5,000 technicians and engineers servicing more than 45 aircraft types.
This transaction creates a new local champion with over 9,500 employees and a comprehensive aviation services offering, well positioned to benefit from growing demand in other markets across the Middle East and North Africa region and the rest of the world.
Chairman of the Board of Directors of ADA, Nader Ahmed Mohamed Alhammadi, said, "The completion of this transaction makes ADA a competitive force in the aviation sector that is equipped to further strengthen Abu Dhabi’s status as a global aviation hub."
"By extending ADA’s value chain into the maintenance, repair and overhaul segment, we have greater scale for growth and look forward to catering to the needs of our customers with an exceptional commitment to excellence,” he continued.
