UAE’s Mubadala open to selling SR Technics: Executive

 02 Mar 2016 - 15:06

UAE’s Mubadala open to selling SR Technics: Executive

 

By Stanley Carvalho

ABU DHABI: Abu Dhabi state-owned fund Mubadala is open to selling its aviation services unit SR Technics, an executive at the company said on Wednesday, confirming a previous media report.
“If someone comes for a prime price we will sell,” Homaid al-Shemmari, Mubadala’s head of aerospace and engineering services, told Reuters at a finance event in Abu Dhabi, though no-one had yet approached Mubadala to buy the unit.
Mubadala, whose main goal is to make investments which enhance the development of the local economy, has stakes in companies including General Electric and private equity firm Carlyle.
State-linked funds in the region have come under pressure as low oil prices prompt governments to tighten their spending and investment plans.
Mubadala was considering the sale of SR Technics and held talks with bankers about the matter, Bloomberg reported on Feb.  23, citing sources familiar with the matter.
Mubadala had initially acquired a 40 percent stake SR Technics in 2006 as part of a $1.3 billion takeover of the company, which was hived off from Swiss Air. Dubai Aerospace Enterprise and Dubai investment firm Istithmar each acquired a 30 per cent shareholding as part of the deal.
In 2009, Mubadala acquired the stake held by Istithmar and in 2011 it became sole owner of the company. 
REUTERS