KUALA LUMPUR: Sapura Resources Bhd’s (SRB) wholly-owned subsidiary, Sapura Aero Sdn Bhd (SASB), signed a memorandum of understanding (MoU) with Subang MRO Sdn Bhd (SMRO) to undertake various aviation services.
In a filing to Bursa Malaysia, SASB and SMRO will form a joint venture company to offer aircraft management, maintenance, repair and overhaul (MRO), ground handling, aircraft parking and hangarage, and other related services.
Further, both companies have agreed to transfer shares in AeroHandlers Sdn Bhd and SMRO to the joint venture (JV) company, with the final price to be decided later based on the terms in the definitive agreements.
This MoU outlines the initial terms that will guide the creation of the shares sale and purchase agreement (SSPA) and joint venture agreement (JVA).
SASB and SMRO have acknowledged that this MOU is non-binding, and the final agreements will require approval from both companies’ boards.
According to the filing, forming a JV company will establish an organisation capable of becoming a significant regional player, offering a comprehensive range of private jet services, including aircraft management, ground handling, and MRO services.
With multiple regulatory approvals, the JV company will be well-positioned to compete with major market players, SRB filing noted.
The MoU will not impact SRB’s issued share capital or the shareholdings of its major shareholders.
It is also not anticipated to have any significant immediate effect on SRB’s earnings per share, net assets per share, or gearing for the financial year ending January 31, 2025.
