KUALA LUMPUR: Capital A Bhd’s engineering and maintenance subsidiary Asia Digital Engineering (ADE), has secured an investment of US$100mil from OCP Asia Ltd.
In a statement, Capital A said the fund would be used for the construction and operationalisation of a new state-of-the-art 14-line aircraft maintenance hangar facility in Sepang.
“The investment will also be allocated for ADE's further business expansion in other verticals and geographical markets, demonstrating the company's commitment to achieving long-term growth and success,” it added.
Capital A chief executive officer Tan Sri Tony Fernandes said during its capital raising exercise, ADE has received strong interest from numerous global investment funds, who have seen the recovery potential of the regional and global airline industry.
“This investment vindicates Capital A’s strategy of diversifying into more than just an airline. We have now set up a fantastic group of airline, airline services, digital and logistics companies with a tremendous upside and now that Covid has ended, investors and the public markets are realising the enormous potential of Capital A,” he added.
Meanwhile, OCP Asia founding partner Teall Edds believed ADE, with its best-in-class engineering capabilities, technology-driven value proposition and experienced management team is well-positioned to be a leading aviation MRO player in the region.
"We appreciate the efforts undertaken by the Ministry of Transport, Ministry of Investment, Trade and Industry, and Malaysia Airports Holdings Bhd to develop Malaysia into a regional aviation hub.
“We are very positive on the recovery of the aviation industry following the challenges of the past three years, and we see the MRO sector as a critical element within the aviation value chain and a key beneficiary of the post-pandemic recovery of global air travel.”