PETALING JAYA: Malaysia Aviation Group (MAG) has signed a sale and purchase agreement (SPA) with Airbus for the acquisition of Sepang Aircraft Engineering Sdn Bhd (SAE), as it seeks to strengthen its maintenance, repair and overhaul (MRO) capabilities and grow third-party revenue.
SAE is a wholly owned subsidiary of Airbus Group.
The proposed acquisition is part of MAG’s Long-Term Business Plan 3.0 (LTBP 3.0), which aims to strengthen its engineering and maintenance capabilities and expand its integrated aviation services portfolio.
MAG president and group CEO Captain Nasaruddin A Bakar said the acquisition reflects the group’s approach of making disciplined investments in areas that have a clear pathway to sustainable value creation.
“The proposed acquisition reflects this approach. It builds on our established engineering and maintenance foundations, positioning MAG to capture opportunities in the growing MRO market and meet increasing third-party demand,” he said in a statement today.
Nasaruddin said SAE complements the existing capabilities of MAB Engineering, particularly through its expertise in the Airbus A320 family, dedicated paint hangar and specialised component repair services.
He said the acquisition would enable MAG to offer a broader range of MRO solutions and serve existing and new third-party customers across Asean and beyond.
“At the same time, we are leveraging Malaysia’s competitive cost-to-skill advantage and established engineering expertise to support the country’s accelerated ambition to become a leading regional aerospace hub,” he said.
The transaction remains subject to customary conditions precedent, including approval from the Civil Aviation Authority of Malaysia (CAAM).
MAG said it will continue to work with SAE, CAAM and other relevant stakeholders to secure the necessary approvals, with completion targeted for 2027.
