KUALA LUMPUR: Malaysia Aviation Group (MAG) has signed a sale and purchase agreement with Airbus to acquire Sepang Aircraft Engineering (SAE) as it seeks to strengthen its engineering and maintenance capabilities and grow third-party revenue.

SAE is currently a wholly owned subsidiary of Airbus Group.

In a statement, MAG said the proposed acquisition forms part of its Long-Term Business Plan 3.0 and will expand the group's maintenance, repair and overhaul (MRO) capabilities and integrated aviation services portfolio.

MAG president and group chief executive officer Captain Nasaruddin A. Bakar said the acquisition would complement MAB Engineering's existing operations, adding expertise in Airbus A320 aircraft, a dedicated paint hangar and specialised component repair services.

"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.

“SAE further complements MAB Engineering’s existing capabilities through its A320 expertise, dedicated paint hangar and specialised component repair services, while building on the strong technical, operational and quality foundations developed under Airbus' stewardship,” he said.

Nasaruddin said the combined capabilities would allow MAG to offer a broader range of MRO services to existing and new third-party customers across Asean and other markets.

He said the acquisition would also leverage Malaysia's competitive cost and engineering expertise as the country seeks to strengthen its position as a regional aerospace hub.

The transaction remains subject to the fulfilment of customary conditions precedent, including approval from the Civil Aviation Authority of Malaysia (CAAM).

MAG said it would work with SAE, CAAM and other relevant stakeholders to secure the necessary approvals, with completion targeted for 2027.