ST Engineering sells stake in STARCO to JV partner for $124.6m
ST Engineering is selling its 49% stake in Shanghai Technologies Aerospace Company Limited (STARCO) to China Eastern Airlines for $124.6 million. This divestment is part of ST Engineering's strategy to rationalize its MRO facilities and enhance operational efficiency. Following the sale, China Eastern Airlines will own 100% of STARCO. The move aligns with ST Engineering's efforts to strengthen its competitiveness in the global MRO market.
This comes as part of an ongoing rationalisation of the group’s MRO facilities.
ST Engineering has announced that its wholly owned subsidiary, ST Engineering Aerospace Ltd, has entered into an agreement to sell all of its equity interests in Shanghai Technologies Aerospace Company Limited (STARCO) to China Eastern Airlines Corporation Limited (CEA) for $124.6m, following the conclusion of a 20-year joint venture agreement.
The sale comprises 49% of the equity interests and the corresponding paid-up registered capital of STARCO. Following the divestment, ST Engineering will cease to have any interest in STARCO. CEA, which owns the balance 51% stake as at the date of this announcement, will hold 100% of STARCO post-divestment
STARCO is a joint venture company established in China in 2004 by ST Engineering and CEA. It provides airframe maintenance, repair and overhaul (MRO) services out of facilities in Hongqiao and Pudong in Shanghai, China.
The move is part of ST Engineering’s ongoing rationalisation of MRO facilities, along with the addition of newer and more modern MRO facilities to enhance its operational efficiency and strengthen the group’s competitiveness in the global MRO market.
