SR Technics, a world leading MRO service provider, is pleased to announce that it has entered into an agreement with SIA Engineering Company (SIAEC) which will acquire a 75% stake in SR Technics Malaysia Sdn Bhd (“SRT Malaysia”), to form a component maintenance, repair and overhaul (“MRO”) joint venture (“JV”). The JV will complement SIAEC’s existing component repair and overhaul services and fleet management programs. This follows the earlier announcement on 1 March 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 USD 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 of 30 November 2021, the net asset value of the SRT Malaysia shares acquired by SIAEC is USD2.62 million.
The completion of this transaction is subject to the satisfaction (or waiver) of conditions precedents set out in the agreement with SR Technics.Read more