Malaysia Aviation Group to acquire Sepang Aircraft Engineering by 2027
KUALA LUMPUR (Oct 1): Malaysia Aviation Group (MAG) has entered into a sale and purchase agreement with Airbus Group to acquire its wholly owned subsidiary, Sepang Aircraft Engineering (SAE), at an undisclosed value.
The transaction is subject to the fulfilment of customary conditions, including receiving approval from the Civil Aviation Authority of Malaysia (CAAM). MAG is currently in talks with the CAAM and other relevant stakeholders to complete the acquisition by 2027.
SAE provides maintenance, repair, and overhaul (MRO) services for aircraft, specialising in Airbus models.
This acquisition is part of MAG’s strategy to strengthen its engineering and maintenance capabilities under its Long-Term Business Plan 3.0.
MAG group chief executive officer Captain Nasaruddin A Bakar said in a statement that the plan focuses on investments that prioritise opportunities to strengthen its core business while diversifying revenue streams to offset volatile fuel prices affecting the aviation industry.
“The proposed acquisition reflects this approach. It builds on our established engineering and maintenance foundations, positioning MAG to capture opportunities in the growing MRO market and meet increasing third-party demand,” he added.
