OutReach - 13 February 2020 -
SIA Engineering Company Limited ("SIAEC") wishes to announce that it has
entered into an agreement with Pos Aviation Sdn Bhd ("Pos Aviation"), a wholly
owned subsidiary of Pos Malaysia Berhad ("Pos Malaysia"), to acquire a 49%
stake in Pos Aviation Engineering Services Sdn Bhd ("PAES").
The top management of Pos Aviation and SIA Engineering Company after the signing event at Singapore Airshow 2020
the agreement, Pos Aviation will retain the remaining 51% stake. The indicative
consideration for the acquisition of Pos Aviation's 49% stake is MYR10.087
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 PAES. Based on PAES's adjusted net
assets as at 31 July 2019, the indicative net asset value of the PAES shares
acquired by SIAEC is MYR10.087 million.
operations in Kuala Lumpur International Airport and 9 other stations in Malaysia. These stations will complement SIAEC's
existing network of Line Maintenance International stations, which will grow to
46 airports in 9 countries including Singapore.
Kim Chiang, Chief Executive Officer of SIAEC, said: "We are delighted
to establish this partnership with Pos Aviation. With the combined strength of
both parties' capabilities
and experience, we are confident that this strategic partnership will deliver a
high level of despatch reliability and quality engineering services to
international airline customers in Malaysia."
Najib Syed Md Noor, Group Chief Executive Officer of Pos Malaysia Berhad, said:
"This strategic partnership marks the entry of a Malaysian brand into the
global MRO market, an important milestone for Pos Malaysia. We foresee an
increase in our customer base and expansion of our market segments through
enhanced product offerings, and this will contribute to the future growth of
our revenue stream. SIAEC's expertise in maintenance and fleet management,
along with our experience in serving various commercial airlines in Malaysia
allows the strategic partnership to offer a complete MRO solution to customers
across the region."
undoubtedly excited about the future prospects and very confident that this
strategic partnership shall exceed all expectations," Syed Md Najib added.
in PAES is not expected to have a material impact on the earnings per share or
the net tangible assets per share of SIAEC for the financial year ending 31
March 2020. None of the Directors of
SIAEC has any interest, direct or indirect, in the transaction.
About SIA Engineering Company Limited
(Company Registration No. 198201025C)
SIA Engineering Company Limited
("SIAEC") is a major provider of aircraft maintenance, repair and overhaul
(MRO) services in Asia-Pacific. SIAEC has a client base of more than 80
international carriers and aerospace equipment manufacturers. It provides line
maintenance services at 36 airports in 8 countries, as well as airframe and
component services on some of the most advanced and widely used commercial
aircraft in the world. Apart from MRO services, SIAEC also offers a
comprehensive and integrated suite of solutions under its fleet management
The 26 ventures with
original equipment manufacturers and strategic partners in Singapore, Hong
Kong, Indonesia, Japan, Philippines, United States, Vietnam and Thailand
increase the depth and breadth of the Company's service offerings. SIAEC has
approvals from 25 national aviation regulatory authorities to provide MRO
services for aircraft registered in the United States, Europe, China and other
About Pos Aviation Sdn Bhd
(Company Registration No.
Pos Aviation Sdn Bhd ("Pos
Aviation") is a licensed independent ground handler in Malaysia that provides
comprehensive services to commercial and private airlines operating into and
through Malaysian airports. This includes 5 main business segments comprising
ground handling, cargo handling, inflight catering, aircraft maintenance and
engineering as well as regional eCommerce distribution hub.
Pos Aviation is a
wholly-owned subsidiary of Pos Malaysia Berhad ("Pos Malaysia"). Pos Aviation
(formerly known as KL Airport Services) was acquired by Pos Malaysia Berhad in
September 2016. The company has presence in 9 international airports in
Malaysia, offering maintenance, repair and overhaul and engineering services
through its wholly-owned subsidiary, Pos Aviation Engineering Services Sdn Bhd.
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