• Proposed combination of Etihad Engineering, AMMROC and GAL with Abu Dhabi Aviation to create a globally competitive Aviation Services and Maintenance, Repair & Overhaul (MRO) business primed for future growth
• Combined operator to capture greater synergies through integrated service offerings to aviation customers at scale with increased access to highly skilled labor, capabilities, and supply chain

Abu Dhabi, UAE – 17 October 2022: ADQ, an Abu Dhabi-based investment and holding company, has submitted an offer to Abu Dhabi Aviation PJSC (ADA) (ADX: ADAVIATION) to combine its full 100% shareholding of Etihad Engineering and AMMROC, as well as its 50% ownership of GAL, into ADA, with the goal of establishing a diversified aviation services and MRO business, with strategic market access and commercial relationships with the world’s largest global aircraft manufacturers and OEMs.

The transaction is expected to create a globally competitive aviation business headquartered in Abu Dhabi to position the Emirate as a world-leading hub for aviation MRO services, logistics, supply chain and advanced engineering capabilities.

The combined group would have assets of approximately AED 9.4 billion (approximately USD 2.6 billion) with an extensive portfolio of aircrafts, MRO centers and hangars.

Upon closing of the transaction, ADA will issue to ADQ a convertible instrument that would convert into approximately 652 million ordinary shares in the capital of ADA. The price at which the convertible instrument will convert into shares in ADA is AED 6.14 per share. The offer implies an equity valuation of approximately AED 2.7 billion for ADA. Following completion, ADQ would own approximately 59 percent of the entire issued share capital of ADA.

H.E. Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, said: “The proposed transaction will further position Abu Dhabi as a world-leading center of aviation excellence, combining the strengths of each asset to form a global MRO and aviation services champion to capitalize on growth opportunities in the aviation industry. The proposed combination will provide a framework to investing in the future development of an advanced aviation ecosystem that supports the sustainable transformation of Abu Dhabi and the UAE’s economy for the long-term.”

If the Board of Abu Dhabi Aviation recommends proceeding with the transaction, it will be subject to shareholder and regulatory approvals.