Dubai: Dubai Aerospace Enterprise (DAE), the majority Dubai government owned aircraft leasing and maintenance company, said on Wednesday it is selling its aircraft maintenance repair and overhaul company StandardAero to an affiliate of private equity firm Veritas Capital.
The value of the deal was not disclosed, however, DAE said it will use the capital from the sale to “aggressively acquire aircraft assets to expand its aircraft leasing portfolio,” according to an emailed statement.
After selling US-based StandardAero, DAE will now “refocus “its efforts on building a world class aerospace footprint anchored in Dubai.” DAE’s current net book value is $3.7 billion (Dh13.6 billion).
Reuters reported earlier this year that DAE was considering selling StandardAero in a deal potentially worth $1.8 billion. DAE is being sold to Veritas Capital Fund V.
DAE previously tried to sell StandardAero and was in talks to merge the company with United Kingdom-headquartered BBA Aviation. DAE acquired StandardAero in 2007.
DAE reported this year a 43 per cent rise in net profit for 2014 of Dh586 million.
