SIA Engineering inks deals in the Philippines

It will buy the remaining 35% shares in SIA Engineering Philippines for $10.52m.

SIA Engineering (SIAEC) has announced two new agreements with Cebu Air, Inc. (CEB) relating to its Philippine operations, based on separate SGX filings.

The aerospace company has entered into an agreement with CEB to acquire all of CEB’s shares in SIA Engineering Philippines (SIAEP) for more than $10.52m (US$7.74m).

CEB currently owns 35% of shares in SIAEP whilst SIAEC has 65%. The amount was arrived after negotiations on a willing-buyer, willing-seller basis and took into account the net asset value and financial performance of SIAEP.

SIAEP reportedly has a state-of-the-art facility located in Clark, Philippines where it provides airframe maintenance, repair, de-lease checks, cabin retrofits and overhaul services for 737, A320 and A330 aircraft, as well as line maintenance services at Clark, SIAEC said.

In a separate bourse filing, SIAEC announced that it has entered into another agreement with CEB to divest its 51% shareholding in Aviation Partnership (Philippines) Corporation (APCC), for more than $7.62m (US$5.61m)

SIAEC currently owns 51% of the corporation whilst CEB owns the remaining 49%.

APCC is based in Manila, Philippines and provides line maintenance services at Manila, Cebu, Davao and Clark, as well as other secondary airports in the Philippines.

Based on APPC’s audited financial statements for the financial year ended 31 March, 51%of the net asset value of APPC was approximately $6.47m (US$4.76m).

Following the Transaction, SIAEC will cease to have any equity interest in APPC.