SIA Engineering Company (SIAEC) has entered into a memorandum of understanding (MOU) with SR Technics Switzerland to acquire (in part or whole) of SR Technics Malaysia.

SR Technics Malaysia is a subsidiary of SR Technics Switzerland, and is incorporated in January 2013 to provide component repair, testing and overhaul services with a focus on the Airbus A320, A330, A340 and the Boeing 737NG aircraft in the Asia-Pacific region and beyond.

SR Technics Switzerland is a leading maintenance, repair and overhaul (MRO) provider for mainly Airbus and Boeing aircraft, engines and components.

The MOU was arrived at after SIAEC and SR Technics Malaysia reviewed the synergies that the latter would bring to the former’s existing component repair and overhaul services.

SIAEC will commence its due diligence on SR Technics Malaysia. Following that, SIAEC and SR Technics Switzerland will enter into negotiations on the transaction.

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The transaction is not expected to have a material impact on the net tangible assets (NTA) per share or earnings per share (EPS) of the SIAEC group in FY2020/2021.

Shares in SIAEC closed 9 cents higher or 4.4% up at $2.13 on March 1.