SIA Engineering (SIAEC) announced on Monday (1 March) that it has signed a memorandum of understanding (MOU) with SR Technics Switzerland to begin acquisition talks for the Malaysian unit of SR Technics. SRT Malaysia, located in Selangor, Malaysia, is a subsidiary of SR Technics, incorporated in January 2013 to provide component repair, testing and overhaul services with a focus on the Airbus A320, A330, A340 and the Boeing 737NG aircraft in the Asia-Pacific region and beyond.
SR Technics is an independent maintenance, repair and overhaul (MRO) service provider for mainly Airbus and Boeing aircraft, engines and components, along with engineering services and training. SR Technics has a diversified global customer base and a long history of MRO experience, having started out as the maintenance and engineering section of Swissair, previously Switzerland’s national carrier. “The MOU was arrived at following a review of the synergies that SRT Malaysia would bring to SIAEC’s existing component repair and overhaul services and fleet management programmes,” SIA said in a statement.
SIAEC will start due diligence on SRT Malaysia, and SIAEC and SR Technics will enter into negotiations on the terms of the transaction, with the objective of finalising and entering into the definitive agreements in respect of the transaction. The transaction is not expected to have a material impact on the net tangible assets per share or the earnings per share of the SIAEC Group in FY2020/2021.