PETALING JAYA: Sapura Resources Bhd
plans to exit its loss-making aviation business and it is currently in talks with an Abu Dhabi-based company to dispose of its two subsidiaries.
Sapura Resources’ aviation segment has been loss-making for years, even before the Covid-19 pandemic.
In a filing with Bursa Malaysia, Sapura Resources said it is looking at selling its entire stake in Sapura Aero Sdn Bhd and DNEST Aviation Sdn Bhd to RoyalJet LLC.
The deal, if materialised, will involve the sale of 37.5 million shares in Sapura Aero and 42.45 million shares in DNEST to premium private aviation firm RoyalJet.
On June 23, Sapura Resources had entered into a non-binding conditional heads of agreement (HoA) with RoyalJet to set out the preliminary terms for the potential transaction.
RoyalJet intends to establish a presence in the South-East Asian private aviation market by designating Subang International Airport as its regional hub for private charters and for its maintenance, repair and overhaul (MRO) business.
Sapura Resources’ aviation business is based in Subang International Airport.
“The HoA is conditional and not legally binding upon either of the parties, save and except for certain provisions as stated in the HoA.
“The consideration for the proposed disposals will be determined upon completion of due diligence exercise on a ‘debt-free, cash-free’ basis (including any shareholder loans),” according to Sapura Resources.
It said it will need the approval from its board of directors and shareholders to enter into a share sale agreement (SSA) later for the deal.
