Under the agreement, Pos Aviation will retain the remaining 51% stake in PAES.
PAES has operations in Kuala Lumpur International Airport and 9 other stations in Malaysia.
The partial acquisition of PAES will see SIAEC’s existing network of Line Maintenance International stations grow to 46 airports in 9 countries.
“With the combined strength of both parties’ capabilities and experience, we are confident that this strategic partnership will deliver a high level of despatch reliability and quality engineering services to international airline customers in Malaysia,” says Png Kim Chiang, chief executive officer of SIAEC.
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For Pos Malaysia, the partnership opens doors for the Malaysian brand to enter into the global MRO market.
“We foresee an increase in our customer base and expansion of our market segments through enhanced product offerings, and this will contribute to the future growth of our revenue stream,” says Syed Md Najib Syed Md Noor, group chief executive officer of Pos Malaysia.
“SIAEC’s expertise in maintenance and fleet management, along with our experience in serving various commercial airlines in Malaysia allows the strategic partnership to offer a complete MRO solution to customers across the region,” he adds, calling it an “important milestone” for the group.
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SIAEC says the investment in PAES is not expected to have a material impact on its earnings per share or net tangible assets per share for the financial year ending Mar 31, 2020.
As at 2.56pm, shares in SIAEC are trading flat at $2.58.
