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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 09:54

Baltcap selling Magnetic MRO to Hangxin for EUR 43 mln

BC, Tallinn, 04.01.2018.Print version
The investment company Baltcap and minority shareholders have decided to sell 100% of the shares in Magnetic MRO, a full-service aircraft maintenance company headquartered in Tallinn, to Guangzhou Hangxin Aviation Technology of China for 43 million euros, informs LETA/BNS.

The indicative closing time is at the end of March, after all regulatory requirements and other closing conditions have been fulfilled, Baltcap said in a press release on January 3rd.

 

"Magnetic MRO management has been actively looking for opportunities to expand into Asia, the highest growth market in aviation," said the CEO of Magnetic MRO, Risto Maeots. "Hangxin's location and service portfolio is complementary to Magnetic MRO, creating substantial synergies and new business opportunities. For the management Hangxin is a perfect match and we are thrilled to start working with their highly professional and energetic team."

 

Kristjan Kalda, chairman of the supervisory board of Magnetic MRO and partner at Baltcap, said that during Baltcap's ownership Magnetic MRO has grown from a small regional player to a profitable global company.

 

"This is the largest exit transaction in Baltcap's history and proves our ambition to create highly competitive Baltic companies. I would like to thank the fantastic team at Magnetic, this strategic move is definitely a huge leap for the company," Kalda said.

 

"We are very pleased to welcome Magnetic MRO to the Hangxin team. Magnetic MRO and their team have developed a high-quality, reliable, customer-focused MRO business," said Lv Haibo, vice president of Hangxin. "We fully support the existing strategy and executive management team, and will support Magnetic MRO's focus on continuing to deliver value to their existing customers as well as expanding global MRO presence."

 

The sellers were advised by Superia Corporate Finance, Seabury Securities and law firm COBALT.

 

Magnetic MRO is an European Aviation Safety Agency (EASA) and Federal Aviation Administration (FAA) certified total technical care and asset management organization offering integrated MRO services. In 2017, Magnetic MRO received Company of the Year and Exporter of the Year awards in Estonia.

 

Based in Guangzhou, Guangdong Province of China, Guangzhou Hangxin Aviation Technology is a privately-owned company providing aircraft component maintenance services. Hangxin services components for over 20 aircraft types and serves over 50 airlines in Asia, Middle East, Europe and North America. Hangxin is listed on Shenzhen Stock Exchange and has a market capitalization over 700 million euros. The management controls 46% of the shareholder votes and, along with employees, 61%.

 

BNS reported in October that Baltcap has put its majority holding in Magnetic MRO up for sale. The fair valuation of the company was then estimated to be in the region of 50 million euros.






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