China’s HNA buying majority of SR Technics
SR Technics has announced that its sole shareholder, Mubadala, the Abu Dhabi investment and development company, has agreed to sell an 80 percent stake in the company to Haikou, China-based HNA Aviation. SR Technics will remain a stand-alone business within HNA Aviation’s portfolio of aviation business. Mubadala, a shareholder since 2006, will retain a 20 percent stake in the company. Financial details were not disclosed.
This is just the latest in a string of deals by HNA Aviation and its parent HNA Group. HNA Group in June bought a 13 percent stake in Virgin Australia for US$159 million to help the airline shore up its balance sheet. HNA has the ability under the terms of that deal to push its holding to 19.99 percent eventually.
HNA owns Hainan Airlines, China’s fourth-largest carrier, and has been expanding its holdings with deals to buy Ingram Micro in the US and Carlson Hotels among others.
Homaid Al Shimmari, CEO of Aerospace and Engineering Services, Mubadala, said: “As a majority shareholder in SR Technics for over six years we are pleased to have found an ideal partner in HNA Aviation to continue the development of what is now one of the world’s leading MRO service providers of aircraft, component and engine services. We remain fully convinced of the long-term potential of SR Technics, and will remain actively involved through our stake and our representation on the board.”
Adam Tan, president of HNA Group, said “HNA fully supports the existing long-term strategy and executive management team, and will be a reliable partner to support SR Technics’ focus on continuing to deliver value to its existing customers, and expanding its global MRO business.”
Jeremy Remacha, interim CEO of SR Technics said: “We are pleased to welcome HNA Aviation as our majority shareholder at a time when we are focused on expanding our global presence. In addition to continuing to serve our existing customers, including our growing support of the Etihad Airline Group, further expansion into the fast-growing Asia Pacific market is a priority for SR Technics and HNA will support this through their growing network of regional and global businesses. We are also pleased to retain the support of Mubadala who has been critical in our development to date.”
The transaction remains subject to anti-trust and regulatory approvals.