The agreement will see SIAEC supporting SIA’s fleet of aircraft through services such as maintenance, repair and overhaul (MRO) and fleet management support. The agreement is expected to yield a labour revenue of $1.14 billion, including the one-year extension.
The transaction is not expected to have a material impact on the net tangible assets (NTA) per share or the earnings per share (EPS) of SIAEC for the FY2024 ending March 31, 2024.
Other than Goh Choon Phong, a director of SIAEC who also sits on the board of SIA, none of the directors and controlling shareholders of SIAEC has any interest in the transaction.
Shares in SIAEC and SIA closed at $2.24 and $5.75 respectively on March 29.
