China's Zhejiang Rifa Holding Group Co. Ltd (RIFA) has outlined its future intentions for New Zealand cargo, MRO, and passenger charter specialist, Airwork Holdings, should a proposed takeover proceed.
In October, RIFA submitted a conditional partial takeover offer for 75% of the ordinary shares in Airwork Holdings, for NZD5.40 (USD3.88) per ordinary share, or NZD203 million (USD145.7 million) in total. Airwork Holdings entails Airwork NZ (Auckland International), Heli Holdings Ltd, Airwork Flight Operations (AWK, Auckland International), and Inflite Charters (Auckland International).
As such, in an Offer Letter to shareholders submitted to the New Zealand Stock Exchange this week, RIFA said it would retain Airwork's corporate head office in New Zealand while supporting its existing business direction.
In terms of future plans, it said that if it were to gain control of Airwork, it would seek to develop the firm's MRO business and capabilities into other emerging markets, including Asia and Latin America.
In addition, it will also grow Airwork's helicopter leasing presence in China through the potential dispatch of existing Airwork helicopters to the region and the acquisition of new helicopters.
A conglomerate with interests in various manufacturing industries, RIFA owns Air Xiya (Beijing Capital), a general aviation firm which specialises in agriculture and forestry, air tours, public service and high-end flight services.
As such, Airwork's expertise would assist it in the expansion of its fleet to include thirty helicopters and fixed-wing aircraft in the next five years.
The deadline for shareholders to accept the offer is January 4, 2017. RIFA has stipulated that it acquire at least 50.1% of Airwork's stock for an offer to proceed.
