DRB-Hicom Secures Key Aerospace Asset: Acquires Spirit AeroSystems Malaysia for RM426 Million
DRB-Hicom Expands Aerospace Capabilities with Strategic Acquisition
PETALING JAYA: In a significant move to bolster its presence in the aerospace sector, DRB-Hicom Bhd has announced the acquisition of Spirit AeroSystems Malaysia Sdn Bhd (SASM) by its wholly-owned subsidiary, Composites Technology Research Malaysia Sdn Bhd (CTRM). The deal, valued at RM426 million (approximately US$95.2 million), marks a substantial investment in Malaysia's growing aerospace industry.
Strengthening Malaysia's Aerospace Ecosystem
This acquisition is poised to significantly strengthen Malaysia's position as a regional aerospace hub. Spirit AeroSystems Malaysia has established itself as a reputable manufacturer of aircraft components, serving major global aerospace players. DRB-Hicom's entry into the picture signals a commitment to expanding the capabilities and capacity of the Malaysian aerospace ecosystem.
What Does This Mean for DRB-Hicom?
For DRB-Hicom, this acquisition represents a diversification of its business portfolio beyond automotive manufacturing. CTRM, already a player in composite technology research, will leverage SASM's existing infrastructure, expertise, and client base to offer a broader range of aerospace solutions. This strategic move opens up new avenues for growth and revenue generation for the conglomerate.
Details of the Acquisition
The agreement involves CTRM acquiring 100% of the issued and paid-up share capital of Spirit AeroSystems Malaysia. The transaction is subject to regulatory approvals and is expected to be completed in the near future. DRB-Hicom has expressed confidence that the acquisition will create synergistic opportunities and contribute positively to the group's overall financial performance.
Future Outlook
The Malaysian aerospace industry has been experiencing steady growth, fueled by government initiatives and increasing global demand for aircraft components and services. DRB-Hicom’s investment in SASM is a testament to the industry's potential and underscores the company's commitment to participating in this burgeoning sector. Analysts predict further expansion and innovation within the Malaysian aerospace landscape, with DRB-Hicom playing a key role in shaping its future.
Key Takeaways
- DRB-Hicom acquires Spirit AeroSystems Malaysia for RM426 million (US$95.2 million).
- The acquisition strengthens Malaysia's aerospace industry.
- CTRM will leverage SASM's expertise and infrastructure.
- Transaction is subject to regulatory approvals.