Abu Dhabi - Mubasher: ADQ has submitted an offer to Abu Dhabi Aviation (ADA) to combine its full 100% shareholding of Etihad Engineering and AMMROC, as well as its 50% ownership of GAL, into ADA.

The step aims to establish a diversified aviation service and MRO business, with strategic market access and commercial relationships with the world’s largest global aircraft manufacturers and OEMs, according to a press release on Monday.

The transaction is forecast to create a globally competitive Aviation Services and Maintenance, Repair & Overhaul (MRO) business primed for future growth.

The combined group would have assets of around AED 9.4 billion (about $2.6 billion) with an extensive portfolio of aircraft, 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 nearly AED 2.7 billion for ADA. Following completion, ADQ would own approximately 59% of the entire issued share capital of ADA.