Abu Dhabi’s ADQ makes a merger offer for Abu Dhabi Aviation | Job Binary


DUBAI, Oct 17 (Reuters) – Abu Dhabi sovereign wealth fund ADQ said on Monday it had made a bid to take a majority stake in Abu Dhabi Aviation ( ADAVIATION.AD ), combining the helicopter operator with ADQ’s stakes in Etihad Engineering, AMMROC and GAL to create a “globally competitive aviation company”. , which has about 9.4 billion dirhams ($2.56 billion).

ADA announced in the stock exchange filing that it will hold a board meeting on Wednesday to discuss the offer.

ADQ would own about 59 percent of ADA’s total equity under the deal, ADQ said.

ADQ, the smallest of Abu Dhabi’s main sovereign wealth funds, started in 2018 as a state-owned asset holding company and has been consolidating its portfolio, privatizing some assets and making strategic acquisitions to build “national champions”.

ADQ announced it will combine ADA with its 100 percent ownership in Etihad Engineering and Advanced Military Maintenance Repair and Overhaul Center (AMMROC) and its 50 percent stake in Abu Dhabi-controlled aviation services company GAL.

GAL is 50% owned by the International Golden Group, a leading supplier to the UAE military, according to the IGG website.

It was not immediately clear how ADQ planned to merge the company in which it does not have control.

ADA, which is 30 percent owned by another Abu Dhabi investment fund, Mubadala, would give ADQ a convertible bond that would convert into about 652 million ADA shares after the deal closes, ADQ said in a statement.

The price of ADA’s converted shares would be 6.14 dirhams per share, valuing it at around 2.7 billion dirhams, ADQ said.

Mohamed al-Suwaidi, CEO of ADQ, said in a statement that the deal would “further position Abu Dhabi as the world’s leading center of aviation expertise” and create a “champion” in the industry.

If ADA’s board approves the deal, it is subject to shareholder and regulatory approval, ADQ said.

($1 = 3.6727 AED)

Report by Yousef Saba; Editing by Susan Fenton

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