KUALA LUMPUR: DRB-Hicom Bhd
has proposed to acquire the entire equity interest in Spirit Aerosystems Malaysia Sdn Bhd (Spirit MY) for a purchase consideration to be determined based on an enterprise value of US$95.2mil.
In a filing with Bursa Malaysia, the conglomerate said its wholly owned subsidiary, Composites Technology Research Malaysia Sdn Bhd (CTRM), had entered into a conditional share purchase agreement with Spirit AeroSystems Inc and Spirit AeroSystems International Holdings Inc for the proposed acquisition.
Upon completion of the proposed acquisition, Spirit MY will become a wholly-owned direct subsidiary of CTRM.
CTRM and its subsidiaries develop and produce aircraft composite components, design and manufacture composite parts for aerospace and non-aerospace applications, and provide testing, engineering and supplier management services.
Spirit MY is a key customer of CTRM, contributing 54.1% of CTRM’s consolidated revenue for the financial year ended Dec 31, 2024 (FY24).
Spirit MY produces advanced technology aerostructures and provides ancillary services to related companies, supplying key components for Airbus and Boeing programmes, including the A220, A320/A321, A350, B737 and B787.
Based on the latest audited consolidated financial statements of Spirit MY for FY24, Spirit MY registered a profit after tax of RM70.1mil and net assets of RM770.5mil.
DRB-Hicom said the purchase consideration will be fully satisfied in cash, which is expected to be funded through bank borrowings.
The group said the proposed acquisition represented a strategic opportunity to further enhance CTRM's competitive position in the aerospace industry by enhancing its aerostructures expertise.
“This would contribute towards improved scale, efficiency, and growth in various areas that would elevate CTRM’s presence in key aerospace programmes and deepen its relationships with global OEMs, expanding CTRM’s relationships with Airbus for their A220, A320, and A350 programmes, and to Boeing on the 737 and 787 programmes.
“At the same time, CTRM will enhance its presence across the supply chain and be better positioned for long-term competitiveness and sustainable growth in an increasingly challenging and dynamic aerospace market,” it said.
“In addition, this acquisition is in line with and supports ongoing efforts to strengthen Malaysia's position as a regional aerospace hub under the New Industrial Master Plan 2030 and the Malaysian Aerospace Blueprint 2030, as well as strategies to promote Malaysian ownership of strategic assets,” DRB-Hicom said.
