Dubai group in Swiss aerospace takeover
By Kevin Done in London and Haig Simonian in Zurich
Published: September 8 2006 03:00 | Last updated: September 8 2006 03:00
The emirates of Dubai and Abu Dhabi are taking over Zurich-based SR Technics, the world's leading independent provider of aircraft maintenance, repair and overhaul (MRO) services, in a deal worth SFr1.6bn (£687m).
It is the biggest takeover involving Dubai Aerospace Enterprise since the government of Dubai said in February that it planned to invest about $15bn (£8bn) in aerospace manufacturing and aviation services to make the Gulf state a leading player in the sector within 10 years.
The acquisition from 3i and Star Capital, private equity groups, is being made by a consortium that includes DAE, Mubadala Development, the investment arm of the Abu Dhabi government, and Istithmar, a Dubai-based investment house.
The emirates have chosen aviation and aerospace as key strategic sectors for investment, encouraged by the rapid growth of Emirates, the Dubai-based airline, and of Dubai airport as a hub for international air travel.
The consortium will hold more than 90 per cent of SR Technics with Mubadala taking 40 per cent of this, DAE and Istithmar 30 per cent each, and the management of SR Technics the rest.
Mubadala was a member of the consortium led by Goldman Sachs that failed earlier this year to take over BAA, the UK airports operator.
DAE aims to expand in areas that include international airport development, aircraft leasing and financing, specialist aerospace education and training, MRO, components and engine manufacture and assembly, and final completion of aircraft.
It has appointed Bob Johnson, the former chief executive of Honeywell Aerospace, a US systems supplier, as chief executive.
DAE University has joined with Cranfield University of the UK to create the first aerospace university in the Middle East, which is due to open next month.
Other building blocks in the development of the emirates' ambitions include the £700m takeover by Dubai International Capital at the end of last year of Doncasters, the UK-based engineering group and a components supplier to aircraft and jet-engine makers.
SR Technics emerged from the bankruptcy of Swissair, the former Swiss airline, which collapsed in late 2001.
Copyright The Financial Times Limited 2006
What is going on with GF, they just left Gamco for SR to get away from Etihad and the politics and now they're back with the same problem if not worst....Your competitor is in charge of your maintenance ....After more than 50 years in business, why aren't they having their own maintenance???
Can someone elaborate for us poor mortals.....Go in peace my son!!