ADA snaps up stakes in three aviation firms in AED 4 bn share swap with ADQ Aviation: Commercial helicopter operator Abu Dhabi Aviation (ADA) has completed an acquisition of stakes in three aviation firms from ADQ subsidiary ADQ Aviation in a transaction valued at AED 4 bn, according to a statement (pdf). ADQ Aviation transferred stakes in the three companies — Etihad Airways Engineering, Advanced Military Maintenance Repair and Overhaul Centre (Ammroc), and Global Aerospace Logistics (GAL) — in exchange for shares in ADA.

The details: The transaction saw ADA acquire 100% of Etihad Airways Engineering, 100% of Ammroc, and 50% of GAL. The transaction will see ADA issue convertible notes valued at some AED 4 bn, to be converted into new ADA shares, totaling 652 mn shares. Following the issuance of the convertible instrument, ADQ Aviation will hold a 59.45% stake in ADA.

Background: ADA initially received the offer from the ADQ subsidiary in 2022, to “provide a framework to investing in the future development of an advanced aviation ecosystem that supports the sustainable transformation of Abu Dhabi and the UAE’s economy for the long term,” ADQ Managing Director Mohamed Alsuwaidi said at the time. The offer was later approved by ADA’s board in April last year (pdf).

ADA’s portfolio expansion aims to “create a competitively positioned, vertically integrated aviation group of companies with strong capabilities in maintenance, logistics, supply chain and advanced engineering.”

What they said: “The completion of this transaction makes ADA a competitive force in the aviation sector that is equipped to further strengthen Abu Dhabi’s status as a global aviation hub. By extending ADA’s value chain into the maintenance, repair and overhaul segment, we have greater scale for growth and look forward to catering to the needs of our customers with an exceptional commitment to excellence,” ADA chairman Nader Ahmed Alhammadi said.

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