Capital A has announced that subsidiary, Asia Digital Engineering (ADE), has entered into a Shareholders Agreement (SHA) with Sivilai Asia to establish a Maintenance Repair And Overhaul (MRO) business in Cambodia.
Capital A via ADE will invest 60% in ADE Cambodia and Sivilai Asia to invest the remaining 40%.
Capital A noted that the new venture would “facilitate and expedite consolidation of all of ADE’s resources and assets in order to optimise more productive, sustainable levels of operation and service for the AOCs, which in turn enable Capital A to capitalise on cost- saving opportunities and potentially capture surpluses from new revenue streams generated”.
ADE will inject capital up to the amount of US$1.2 million with two tranches (the first tranche during pre-incorporation and the balance would be post-incorporation), and ADE will use internal funds for its share of the equity investment.