DUBAI — Abu Dhabi sovereign wealth fund ADQ mentioned on Monday it had made a suggestion to take a controlling stake in Abu Dhabi Aviation and merge the helicopter operator with ADQ stakes in Etihad Engineering, AMMROC and GAL to create a “globally aggressive aviation enterprise” with about 9.4 billion dirhams ($2.56 billion) in belongings.
ADA mentioned in a inventory change submitting it might maintain a board assembly on Wednesday to debate the provide.
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ADQ would personal about 59% of ADA’s total issued share capital below the deal, ADQ mentioned.
, the smallest of Abu Dhabi’s most important state funds, began in 2018 as a holding firm for presidency belongings and has been consolidating its portfolio, privatizing some belongings and making strategic acquisitions to construct “nationwide champions.”
ADQ mentioned it might mix ADA with its 100% shareholding in Etihad Engineering and Superior Navy Upkeep Restore and Overhaul Heart (AMMROC) and with its 50% stake in Abu Dhabi-controlled aviation companies agency GAL.
GAL is 50% owned by Worldwide Golden Group, the UAE army’s main provider based on IGG’s web site.
It was not instantly clear how ADQ deliberate to merge an entity wherein it doesn’t have a controlling stake.
ADA, 30% owned by one other Abu Dhabi wealth fund, Mubadala, would situation a convertible instrument to ADQ that may convert into roughly 652 million shares of ADA when the transaction closes, ADQ mentioned in an announcement.
The transformed shares of ADA can be priced at 6.14 dirhams a share, implying an fairness valuation of about 2.7 billion dirhams, ADQ mentioned.
ADQ’s Chief Govt Mohamed al-Suwaidi mentioned within the assertion that the deal would “additional place Abu Dhabi as a world-leading heart of aviation excellence” and create an trade “champion.” If ADA’s board approves the transaction, it might be topic to shareholder and regulatory approvals, ADQ mentioned. ($1 = 3.6727 UAE dirham) (Reporting by Yousef Saba; Modifying by Susan Fenton)