SINGAPORE - SIA Engineering announced late last Friday (Dec 14) that it is divesting its entire stake in its wholly owned subsidiary Aircraft Maintenance Services Australia (AMSA) for A$4.5 million (S$4.5 million) in cash to aircraft leasing company Heston Services Limited.
AMSA is based in Australia, and is in the business of providing line maintenance services in major Australian airports.
The negative net tangible asset value of SIA Engineering's stake in AMSA is A$1.1 million, based on AMSA's audited financial statements for the financial year ended March 31, 2018.
In a filing to the Singapore Exchange, SIA Engineering said that the divestment is in line with its overall strategy to "streamline and rationalise its line maintenance international operations, and to focus on areas of high growth potential and competitive advantage".
The divestment of AMSA is expected to result in a gain of approximately S$5.5 million for SIA Engineering for the financial year ending March 31, 2019. The completion of the transaction is subject to conditions set in the agreement with Heston.
The divestment is not expected to have a material impact on the net tangible assets per share or the earnings per share of the group in FY2018/2019.