SIA Engineering Company Limited (SIAEC) has entered into an agreement with SR Technics Switzerland Ltd. (SR Technics) to acquire a 75% stake in SR Technics Malaysia Sdn Bhd (SRT Malaysia), to form a component maintenance, repair and overhaul joint venture (JV). The JV will complement SIAEC’s existing component repair and overhaul services and fleet management programmes. This follows the earlier announcement on March 1, 2021 of the potential acquisition (in part or whole) of SRT Malaysia, located in Selangor, Malaysia.
Under the agreement, SR Technics will retain the remaining 25% stake. The consideration for the acquisition of SR Technics’ 75% stake in SRT Malaysia is US$3.75 million in cash. This was arrived at after arm’s length negotiations on a willing-buyer, willing-seller basis, and after considering, inter alia, the net asset value and financial performance of SRT Malaysia. Based on SRT Malaysia’s adjusted net tangible assets as at 30 November 2021, the net asset value of the SRT Malaysia shares acquired by SIAEC is US$2.62 million.
The completion of this transaction is subject to the satisfaction (or waiver) of conditions precedents set out in the agreement with SR Technics.
