ADQ makes $2.6 bn merger offer to Abu Dhabi Aviation

To create a global aviation giant
ADQ makes $2.6 bn merger offer to Abu Dhabi Aviation
Abu Dhabi International Airport (Image credit: ADAC)

ADQ, an Abu Dhabi-based investment and holding company, has offered to combine its shareholdings in AMMROC, Etihad Engineering, and GAL into Abu Dhabi Aviation (ADA) to create a global aviation MRO and services leader. The combined group will have assets of approximately 9.4 billion dirhams (approximately $2.6 billion) with an extensive portfolio of aircraft, MRO centers, and hangars.

ADQ has submitted the offer to ADA to combine its full 100% shareholding of Etihad Engineering and AMMROC, as well as its 50% ownership of GAL, into ADA, with the goal of establishing a diversified aviation service and MRO business, with strategic market access and commercial relationships with the world’s largest global aircraft manufacturers and OEMs, said a statement.

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.

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 6.14 dirhams per share.

The offer implies an equity valuation of approximately 2.7 billion dirhams for ADA. Following completion, ADQ would own approximately 59 percent of the entire issued share capital of ADA.