Transaction News: SIA Engineering and SR Technics Switzerland enter into joint venture to operate MRO services in Malaysia

On 16 February 2022, SIA Engineering Company Limited (“SIAEC”), a wholly owned subsidiary in the Singapore Airlines Group, entered into a share purchase agreement with SR Technics Switzerland AG (“SRT Switzerland”) to acquire 75% of the issued shares in SR Technics Malaysia Sdn Bhd (“SRT Malaysia”) as well as a shareholders’ agreement to regulate their relationship in SRT Malaysia with SRT Switzerland, the holder of the remaining 25% of the issued shares in SRT Malaysia (collectively the “Transaction”).
SRT Malaysia provides component repair, testing, and overhaul services (“MRO”) with a focus on the Airbus A320, A330, A340 and the Boeing 737NG aircraft in the Asia-Pacific region and beyond.
The Transaction is intended to complement SIAEC’s existing MRO services and fleet management programs and is part of SIAEC’s strategic plan to grow its component repair and overhaul services network.
The consideration for the acquisition of SRT Switzerland’s 75% stake in SRT Malaysia is USD 3.75 million in cash. 
The Transaction is conditional upon certain conditions precedent being satisfied or waived.
Skrine acted as legal counsel for SRT Switzerland on the Transaction. Sheba Gumis (Partner) led the Transaction supported by Nur Liana binti Mohamed (Associate).
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