SIA Engineering has sold its entire 39.2 percent stake in Asian Surface Technologies (AST) to PAS Technologies for US$2.79 million in cash, the aircraft maintenance company said in a filing to SGX Wednesday.
AST is a Singapore-based joint venture, with United Technologies International Corp. holding 20 percent and PAS holding 40.8 percent, the filing said. AST’s main businesses include repairing aircraft engine fan blades and providing corrosion-resistant coating services for the aviation and oil and gas industries.
“SIAEC has been reviewing its portfolio of joint ventures for consolidation, and to focus on building next-generation aircraft capabilities. The divestment decision was made in light of the declining work volume at AST,” the company said in the statement.
SIA Engineering said it would recognise a gain of around S$2.68 million on the divestment.
Based on AST’s financial statements for 2020, the net asset value of the stake sold by SIA Engineering is S$3.81 million, the filing said.
SIA Engineering provides aircraft maintenance, repair and overhaul (MRO) services in the Asia-Pacific region. The company provides line maintenance services at more than 25 airports across seven countries, and offers airframe and component services on commercial aircraft.