Sovereign Wealth Fund Makes Merger Offer To Abu Dhabi Aviation

The Abu Dhabi Developmental Holding Co. (ADQ) sovereign wealth fund has made an offer to purchase a controlling stake in Abu Dhabi Aviation (ADA), reports Reuters.

If agreed to, the offer would see ADQ merge ADA with its 100 percent shareholdings in Etihad Engineering and Advanced Military Maintenance Repair and Overhaul Center (AMMROC) and its 50 percent stake in Global Aerospace Logistics (GAL) to create a competitive international aviation contractor.

The U.A.E.’s leading military firm, International Golden Group, holds the other 50 percent in GAL, raising questions about ADQ’s plan to merge the other companies with a firm in which it does not have full control.

The proposed new state-owned defense contractor is estimated to be worth around US$2.56 billion.

ADA is holding a board meeting on Wednesday to consider the offer.