Abu Dhabi’s ADQ Makes Merger Offer to Abu Dhabi Aviation

Abu Dhabi’s ADQ Makes Merger Offer to Abu Dhabi Aviation

Abu Dhabi sovereign wealth fund ADQ said on Monday it had made an offer to take a controlling stake in Abu Dhabi Aviation and merge the helicopter operator with ADQ stakes in Etihad Engineering, AMMROC and GAL to create a "globally competitive aviation business" with about 9.4 billion dirhams ($2.56 billion) in assets.

ADA said in a stock exchange filing it would hold a board meeting on Wednesday to discuss the offer.

ADQ would own about 59% of ADA's entire issued share capital under the deal, ADQ said.

ADQ said it would combine ADA with its 100% shareholding in Etihad Engineering and Advanced Military Maintenance Repair and Overhaul Center (AMMROC) and with its 50% stake in Abu Dhabi-controlled aviation services firm GAL.

GAL is 50% owned by International Golden Group, the UAE military's leading supplier according to IGG's website.

It was not immediately clear how ADQ planned to merge an entity in which it does not have a controlling stake.

ADA, 30% owned by another Abu Dhabi wealth fund, Mubadala, would issue a convertible instrument to ADQ that would convert into roughly 652 million shares of ADA when the transaction closes, ADQ said in a statement.

The converted shares of ADA would be priced at 6.14 dirhams