The merger between Abu Dhabi Aviation and ADQ Aviation is on the last leg with ADQ Aviation transferring 100% of the issued share capital of Advanced Military Maintenance Repair and Overhaul Centre LLC (AMMROC), 100% of the issued share capital of Etihad Airways Engineering LLC (EYE), and 50% of the issued share capital of Global Aerospace Logistics LLC (GAL) to Abu Dhabi Aviation.
Abu Dhabi Aviation has approved issuing mandatory convertible bonds worth $1.09 billion to ADQ Aviation and Aerospace Services at a recent shareholder meeting. With this transaction Abu Dhabi Aviation will owe a controlling stake in ADQ Aviation as it already owns the MRO, Engineering and logistics arm of ADQ Aviation.
The bonds will convert into 652,000,000 Abu Dhabi Aviation shares, given a conversion ratio of 6.14 for each new share. Abu Dhabi Aviation says that ratio was the result of financial and technical valuations. Each new share will be treated as fully paid and valued at $0.27 and increase the issued share capital of Abu Dhabi Aviation to $298.7 million.
With this deal, ADQ Aviation will own 59.44% of the combined group's share capital. The merger between Abu Dhabi Aviation and ADQ Aviation is expected to finalise in Q2 of 2023 with the new shares also due to list on the Abu Dhabi Stock Exchange (ADX) prior to June 30.