- ADQ made Abu Dhabi Aviation an offer to combine its shares in three aviation businesses with ADA to form an MRO operator with AED 9.4B in assets. The Advanced Military Maintenance Repair and Overhaul Center, Etihad Engineering, and 50% of Global Aerospace Logistics are all entities that ADQ seeks to unite with ADA.
- The deal will establish a diverse aviation company centered in Abu Dhabi with the goal of establishing the emirate as a hub for sophisticated engineering, logistics, and MRO services. The combined entity group will possess a sizeable fleet of airplanes, MRO facilities, and hangars.
- A convertible bond that ADA will give to ADQ will convert into 652 million ADA shares, each valued at AED 6.14. The equity is worth around AED 2.73B. ADQ will hold a little over 59.44% of ADA's total issued share capital.
18 Oct 2022
Aviation Merger Alert
Abu Dhabi’s ADQ plans to build a $2.6B aviation services entity
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Why it matters
The news comes as the global MRO market is anticipated to expand to a $1 trillion industry between 2022 and 2031. At the same time, demand for engine MRO will increase at a rate of 3.7%, increasing the market's size to $474B during the following ten years. It is said that by 2031, Middle East MRO service demand will reach $12.9B.