ST Aerospace sells 5% stake in Guangzhou joint venture for $9.2m

ST Aerospace's interest in the firm will decline to 44%.

Singapore Technologies Aerospace Ltd (ST Aerospace) inked a definitive agreement to sell 5% of ST Aerospace (Guangzhou) Aviation Services Company Limited (STA Guangzhou) for $9.2m.

According to a press release, the stake was sold to Japan Airlines Co., Ltd (Japan Airlines). The company is ST Aerospace's joint venture (JV) with Guangdong Airport Authority.

Upon completion, which is subject to customary closing conditions, ST Aerospace and Guangdong Airport Authority will each own 44% and 51% stake respectively in STA Guangzhou, while Japan Airlines will become a strategic partner of the JV with a 5% stake.

STA Guangzhou, set up in 2014, is an aircraft maintenance, repair and overhaul (MRO) station located within Guangzhou Baiyun International Airport in China. Its has unaudited net tangible assets of about $84m as at 31 December 2017.