In a filling with Bursa Malaysia today, Pos Malaysia said the disposal was to facilitate the entry of SIAEC as Pos Aviation’s strategic partner.

KUALA LUMPUR: Pos Malaysia Bhd is selling a 49 per cent stake in its indirect wholly-owned Pos Aviation Engineering Services Sdn Bhd to SIA Engineering Co Ltd (SIAEC) for an indicative RM10.09 million.

In a filling with Bursa Malaysia today, Pos Malaysia said the disposal was to facilitate the entry of SIAEC as Pos Aviation’s strategic partner.

It has signed a share purchase agreement and shareholders agreement with SIAEC for the divestment of 7.84 million Pos Aviation shares to SIAEC.

"The proposed divestment will also allow Pos Aviation to expand its customer base by enhancing its technical expertise in the aviation sector,” Pos Malaysia said.

"The final cash consideration will be determined based on the latest available management financial statements prior to the completion date after incorporating the agreed similar adjustments in arriving at the indicative disposal consideration," it added.

SIAEC is a major provider of aircraft MRO services in Asia-Pacific.

It has a client base of more than 80 international carriers and aerospace equipment manufacturers, Pos Malaysia said.