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Friday, 14 February 2020

(The Star) S’pore firm to buy stake in Pos Aviation Engineering

KUALA LUMPUR: SIA Engineering Company Ltd will emerge as a strategic partner in Pos Malaysia Bhd’s aircraft maintenance and engineering business following the Singapore company’s proposed purchase of a 49% stake in the unit.

Pos Malaysia’s subsidiary Pos Aviation Sdn Bhd has entered into a share purchase agreement and a shareholders’ agreement with SIA Engineering for the sale in Pos Aviation Engineering Services Sdn Bhd, for a cash consideration of RM10.09mil.

Meanwhile, the proposed partnership will allow Pos Aviation Engineering to expand its customer base by enhancing its technical expertise in the aviation sector, expanding its product offerings and diversifying into new lines of maintenance, repair and overhaul (MRO), tapping into new markets and distribution networks, said Pos Malaysia in a Bursa Malaysia filing.

“The proposed divestment will not have any effect on the Company’s issued and paid-up share capital and substantial shareholders’ shareholdings.

“There will also be no material effect on Pos Malaysia Group’s consolidated earnings, gearing and net assets for the financial year ending 31 December 2020, ” it said.

According to the statement, SIA Engineering is a major provider of aircraft MRO services in Asia-Pacific with a client base of more than 80 international carriers and aerospace equipment manufacturers.