Tuesday 04 October 2016 11:20 AM
China's RIFA signs takeover deed for aviation firm Airwork with major shareholder
By Fiona Rotherham
Oct. 4 (BusinessDesk) - Chinese company Zhejiang Rifa Holding Group (RIFA) has entered a takeover lock-up deed with the
major shareholders in specialist aviation company Airwork Holdings at $5.40 per share.
Under the pre-bid deed, RIFA has agreed to make a conditional partial takeover offer for 75 percent of Airwork’s
ordinary shares. Parties associated with non-executive director Hugh Jones hold 58.943 percent of the Auckland-based
company.
The shares jumped 18 percent to $5.20, having risen 30 percent in the past year. Airwork floated in late 2013, selling
shares in an initial public offering at $2.60.
In addition, Condor Holdings, associated with Jones, has agreed to sell the number of shares required to fully repay the
amount outstanding under loans owed to it by participants allocated shares under its funding arrangements trust deed
which have not yet vested.
Airwork’s independent directors have advised all shareholders to take no action, pending further guidance from the
company. It’s understood that the deed intends a takeover notice being given on or prior to this Friday.
Airwork delivered a 58 percent boost in net profit for the 2016 financial year to $24.6 million following strong
earnings growth in its expanded fixed wing aircraft business which is expected to continue this year due to the impact
of aircraft deliveries and new contracts. The helicopter business also reported a solid performance with earnings growth
of 16 percent despite flat revenue.
The deed notice states the takeover will be subject to a number of conditions including agreement from the Commonwealth
Bank, ANZ and BNZ to continue Airwork’s current funding arrangements and agreement from joint venture partners to
continue those arrangements on existing terms.
It will also require Overseas Investment Office and Chinese government approval.
The deed says the Hangzhou-headquartered company operates a diverse range of businesses, with total assets of US$1.1
billion generating annual revenue of US$250 million. It operates in seven countries including China, Australia and
Italy, and its core business is textile machinery and electronic precision machinery.
RIFA said it intends maintaining Airwork’s listing on the NZX main board and to support its existing business strategy
and retain the corporate headquarters in New Zealand.
RIFA said it believes there are growth opportunities for Airwork with it as a major shareholder including developing its
maintenance, repair and overhaul capability in emerging markets and growing its helicopter leasing presence in China.
(BusinessDesk)
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