SIA Engineering said on Friday that it would divest its wholly owned Australia-based subsidiary, Aircraft Maintenance Services Australia, or AMSA, to Heston Services.
SIA Engineering will receive around A$4.5 million in cash upon the completion of the deal, and it is expected to result in a gain of around S$5.5 million for the financial year ending 31 March 2019, it said in a filing to SGX late on Friday.
Based on AMSA’s audited financial statements for the fiscal year ended 31 March 2018, AMSA had a negative net tangible asset value of A$1.1 million, it said.
The divestment of AMSA, which provides line maintenance services in major Australian airports, was in line with SIA Engineering’s strategy to streamline its international line maintenance operations, it said.
SIA Engineering plans to focus on segments with high growth potential and competitive advantage, it said.