SIA Engineering Company Limited (SIAEC) has announced the finalisation of agreements with Arport Aircraft Maintenance & Engineering (Fujian) to establish a Maintenance, Repair and Overhaul (MRO) joint venture in Fujian, China. This development follows a series of agreements dating back to September 2023, culminating in SIAEC Global, a wholly-owned subsidiary of SIAEC, acquiring a 30% stake in Arport AME for RMB129m.
The joint venture aims to leverage the strengths of both companies to enhance MRO services in the region. The transaction consideration was determined based on bid requirements, considering Arport AME’s net asset value and future prospects. As of 31 December 2024, Arport AME’s net tangible assets were RMB40.3m. Post-transaction, the pro-forma enlarged net tangible assets are expected to be RMB169.3m, with RMB50.8m attributable to SIAEC’s interest.
The transaction is contingent upon regulatory approvals and other conditions. SIAEC stated that the transaction would not significantly impact its net tangible assets per share or earnings per share for the financial year ending 31 March 2026. None of SIAEC’s directors or controlling shareholders have any direct or indirect interest in the transaction, aside from their shareholdings in the company.
SIAEC, a leading MRO service provider in the Asia-Pacific, serves over 80 international carriers and operates across nine countries. This joint venture with Arport AME is expected to strengthen its service offerings in the Chinese market.
