Singapore-based MRO provider SIA Engineering Co. (SIAEC) plans to establish a component repair joint venture in Malaysia after agreeing to acquire a 75% stake in SR Technics Malaysia.
SIAEC, the MRO unit of Singapore Airlines, says its stake is valued at $3.75 million in cash, with SR Technics retaining a 25% share. The completion of this transaction is subject to the conditions set out in the agreement with SR Technics.
Based on SRT Malaysia’s adjusted net tangible assets as of Nov. 30, 2021, the net asset value of shares acquired by SIAEC stands at $2.62 million.
The deal follows reports in March 2021 that the component shop in Selangor could be sold to SIAEC. SR Technics established the Malaysia shop in 2014 with a focus on Airbus A320, A330, A340 and Boeing 737NG component services.
“The setting up of this component repair and overhaul JV with SR Technics in Malaysia is a significant step in our strategic plan to grow our component repair and overhaul services network under our recently announced Component Services Division,” says Ng Chin Hwee, CEO of SIAEC.
Jean-Marc Lenz, CEO of SR Technics, adds that the formation of the new JV will result in new synergies between both parties. “Partnering with SIAEC will not only enable us further to increase the business volume on existing repair capabilities, but it will also allow us to jointly develop new repair capabilities for new engine types and aircraft platforms,” says Lenz.
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