Abu Dhabi's holding company ADQ submitted an offer to Abu Dhabi Aviation to combine its stakes in three aviation companies with ADA to create a maintenance, repair and overhaul (MRO) operator, with Dh9.4bn ($2.6bn) in assets.
ADQ seeks to combine its entire shareholding of Etihad Engineering and the Advanced Military Maintenance Repair and Overhaul Centre, along with its 50 per cent ownership of Global Aerospace Logistics, with ADA, it said on Monday.
The transaction will create an Abu Dhabi-based diversified aviation business that aims to position the emirate as a centre for MRO services, logistics, supply chain and advanced engineering.
The combined entity group will have an extensive portfolio of aircraft, MRO centers and hangars, according to ADQ.
“The proposed transaction will further position Abu Dhabi as a world-leading centre of aviation excellence, combining the strengths of each asset to form a global MRO and aviation services champion to capitalise on growth opportunities in the aviation industry,” said ADQ managing director and chief executive Mohamed Alsuwaidi.
“The proposed combination will provide a framework to investing in the future development of an advanced aviation ecosystem that supports the sustainable transformation of Abu Dhabi and the UAE’s economy for the long term.”
The global MRO industry is expected to grow to a $1 trillion business over the 2022-2031 period, according to Aviation Week Network.
Meanwhile, engine MRO demand will grow at 3.7 per cent that will boost the market size to $474bn over the next decade.
Specifically, Middle East demand for MRO services will grow to $12.9bn by 2031, it said.
On closing the transaction, ADA will issue a convertible instrument to ADQ that would convert into about 652 million ordinary shares of ADA, each priced at Dh6.14, ADQ said.
The offer implies an equity valuation of about Dh2.73bn, ADA said in a bourse filing on the Abu Dhabi Securities Exchange on Monday.
After completion, ADQ would own about 59.44 per cent of the entire issued share capital of ADA.
If the board of ADA recommends proceeding with the transaction, it will be subject to shareholder and regulatory approvals.
“Should an agreement be reached between parties, an ADA general assembly meeting would consider approving the transaction during the first quarter of 2023,” ADA said in the bourse filing.
“At this time, there is no certainty that any transaction will occur.”
The potential deal comes after a series of transactions in which ADQ has consolidated its assets over the past couple of years.
In March 2021, ADQ signed an agreement to merge Rafed and Union71 with Dubai-based Pure Health to create a major healthcare support services provider.
In May 2021, ADQ’s unit Senaat submitted an offer to combine its wholly owned subsidiary Emirates Steel with Arkan Building Materials Company to create an industrial group with assets worth $3.54bn.
ADQ's offer comes at a time when Abu Dhabi is seeking to diversify its economy from oil, with a focus on sectors such as advanced technology, manufacturing and tourism.
ADQ's mobility and logistics portfolio includes aviation companies such as Wizz Air Abu Dhabi and Abu Dhabi Airports.
more from Janine di Giovanni
The biog
Hobbies: Writing and running
Favourite sport: beach volleyball
Favourite holiday destinations: Turkey and Puerto Rico
Developer: Ubisoft Montreal / Ubisoft Toronto
Publisher: Ubisoft
Platforms: Playstation 4, Xbox One, Windows
Release Date: April 10
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
THE%20SWIMMERS
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ESally%20El-Hosaini%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ENathalie%20Issa%2C%20Manal%20Issa%2C%20Ahmed%20Malek%20and%20Ali%20Suliman%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
The Facility’s Versatility
Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket
UAE currency: the story behind the money in your pockets
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The specs: 2018 Ford Mustang GT
Price, base / as tested: Dh204,750 / Dh241,500
Engine: 5.0-litre V8
Gearbox: 10-speed automatic
Power: 460hp @ 7,000rpm
Torque: 569Nm @ 4,600rpm
Fuel economy, combined: 10.3L / 100km
AIR
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EBen%20Affleck%3Cbr%3E%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EMatt%20Damon%2C%20Jason%20Bateman%2C%20Ben%20Affleck%2C%20Viola%20Davis%3Cbr%3E%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
DC%20League%20of%20Super-Pets
%3Cp%3EDirector%3A%20Jared%20Stern%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Dwayne%20Johnson%2C%20Kevin%20Hart%2C%20John%20Krasinski%2C%20Keanu%20Reeves%2C%20Olivia%20Wilde%2C%20Kate%20McKinnon%2C%20Jameela%20Jamil%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
if you go
Getting there
Etihad (Etihad.com), Emirates (emirates.com) and Air France (www.airfrance.com) fly to Paris’ Charles de Gaulle Airport, from Abu Dhabi and Dubai respectively. Return flights cost from around Dh3,785. It takes about 40 minutes to get from Paris to Compiègne by train, with return tickets costing €19. The Glade of the Armistice is 6.6km east of the railway station.
Staying there
On a handsome, tree-lined street near the Chateau’s park, La Parenthèse du Rond Royal (laparenthesedurondroyal.com) offers spacious b&b accommodation with thoughtful design touches. Lots of natural woods, old fashioned travelling trunks as decoration and multi-nozzle showers are part of the look, while there are free bikes for those who want to cycle to the glade. Prices start at €120 a night.
More information: musee-armistice-14-18.fr ; compiegne-tourisme.fr; uk.france.fr
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
Sholto Byrnes on Myanmar politics
