SINGAPORE (Dec 14): SIA Engineering Company, the provider of aircraft maintenance, repair and overhaul (MRO) services, is divesting its 100% stake in wholly-owned subsidiary, Aircraft Maintenance Services Australia (AMSA).

AMSA is based in Australia and is in the business of providing line maintenance services in major Australian airports.

SIA Engineering says the divestment of AMSA is in line with SIA Engineering’s overall strategy to streamline and rationalise its line maintenance international operations, and to focus on areas of high growth potential and competitive advantage.

SIA Engineering says the consideration for the divestment was arrived at after arm’s length negotiations with buyer Heston Services, on a “willing-buyer, willing-seller” basis and after taking into account the net asset value and financial performance of AMSA.

SIA Engineering will receive an estimated A$4.5 million ($4.45 million) in cash upon the completion of the divestment.

The divestment is expected to result in a gain of approximately $5.5 million for SIA Engineering for the financial year ending March 31 2019.

Year to date, shares in SIA Engineering are down 27% to close at $2.31 on Friday.