Avmax Holdings Inc. (AHI) says it has entered into a share purchase agreement with China's Sunward Intelligent Equipment Co., Ltd. and local Canadian firm Binder Capital Corp. (BCC) concerning the proposed sale of its shares in its Avmax Group Inc. (AGI) unit.
Under the terms of the deal, Sunward will gradually acquire all AHI shares in AGI between now and 2019. However, Sunward's participation in the ownership of AGI's R1 Airlines (Calgary) subsidiary will be restricted, pending Canadian regulatory approval. AGI's other constituent units include: Avmax Aircraft Leasing, Avmax Aviation Services, Avmax USA, and Avmax Avionics. The US subsidiaries have also been excluded from the transaction pending US government approval.
“Avmax will benefit from Sunward’s geographic footprint and industry connections to grow new revenue opportunities in the areas of aviation," Kirk Watson, chief operating officer of Avmax, said. "With a foothold in one of the largest markets in the world, China, and with Avmax’s current global locations, the combined companies will contribute to a significant aviation presence.”
Avmax and Sunward will continue to operate as independent units while taking advantage of synergies between the two companies.
Though the deal's value was not disclosed, Sunward said last year it would raise up to CNY2.2 billion (USD347.24 million) via a private placement arrangement of shares to fund the acquisition.
R1 Airlines specializes in charter operations employing a fleet of one CRJ100, two CRJ200s, one Dash 8-100, one Dash 8-200, and one Dash 8-300.
