Asia Digital Engineering secures USD 100 million investment from OCP Asia Ltd
KUALA LUMPUR – Asia Digital Engineering (ADE), the engineering and maintenance subsidiary of Capital A, announced today that it has secured a USD 100 million investment from OCP Asia Ltd. which will be used for the construction and operationalisation of a new state-of-the-art 14-line aircraft maintenance hangar facility in Sepang. The investment will also be allocated for ADE’s further business expansion in other verticals and geographical markets, demonstrating the company’s commitment to achieving long-term growth and success.
Attending the signing ceremony on Wednesday, YB Senator Datuk Seri Utama Tengku Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry Malaysia said: “I am pleased to see that Malaysia continues to be an attractive destination for foreign direct investment, and also offer stories of entrepreneurial success. We all know and are proud of AirAsia’s contribution to the aviation industry in the region touching the lives of millions of people. I am confident that ADE can recreate the success story of AirAsia, continuing to expand its offerings and strengthen its footings in the MRO industry, regionally and globally. The government is committed to supporting the growth of the aviation industry and we will continue to work closely with all stakeholders to create a conducive environment for growth and investment.
Tony Fernandes, CEO of Capital A said: “On behalf of Capital A, I sincerely congratulate the team at ADE. During its capital raising exercise, ADE has received strong interest from numerous global investment funds, who have seen the recovery potential of the regional and global airline industry. This investment vindicates Capital A’s strategy of diversifying into more than just an airline. We have now set up a fantastic group of airline, airline services, digital and logistics companies with a tremendous upside and now that Covid has ended, investors and the public markets are realising the enormous potential of Capital A.”
Mahesh Kumar, CEO of ADE said: “We are incredibly excited to have secured this significant backing from OCP Asia, which has an extensive investment experience across multiple industries throughout Asia Pacific. The investment from OCP Asia will enable us to construct a new, state-of-the-art 14-line aircraft maintenance hangar facility in Sepang in addition to existing facilities at our core AirAsia operating hubs, making ADE one of the largest aircraft MRO service providers in the region. We are grateful for the support shown by OCP Asia and look forward to a successful partnership. We would also like to thank Broadgate Advisers who acted as our financial adviser throughout this fundraising exercise. ”
Teall Edds, Founding Partner of OCP Asia said: “OCP Asia is pleased to have the opportunity to invest in and partner with ADE as it executes the next phase of its growth strategy. We believe ADE, with its best-in-class engineering capabilities, technology-driven value proposition and experienced management team is well positioned to be a leading aviation MRO player in the region. We appreciate the efforts undertaken by the Ministry of Transport, Ministry of Investment, Trade and Industry, and Malaysia Airports Holdings Berhad to develop Malaysia into a regional aviation hub. We are very positive on the recovery of the aviation industry following the challenges of the past three years, and we see the MRO sector as a critical element within the aviation value chain and a key beneficiary of the post-pandemic recovery of global air travel.”
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Asia Digital Engineering (ADE): Founded in 2020, ADE is a wholly-owned subsidiary of Capital A based in klia2, Kuala Lumpur, Malaysia. ADE is a cast from AirAsia’s Engineering Department best practices and experience. While ADE was founded in 2020, they have been a solid backbone for AirAsia for over 20 years and counting. ADE offers a broad spectrum of aircraft services such as line maintenance, base maintenance, component repair and overhaul, warehouse management, technical and design organisation services along with digitally driven engineering solutions and engineering support services. With vast experience in airline engineering managing the world’s best low cost airlines, ADE aims to deliver the best value and customer experience by providing the highest standard of professional services in quality, reliability and safety.
About OCP Asia
Established in 2009, OCP Asia is an investment manager with a long-term track record of providing financing solutions for enterprises across the Asia Pacific region. With offices in Singapore, Hong Kong and Sydney, the Firm’s franchise has been developed with a commitment to establishing corporate governance incentives through credit facilities which align the best interests of its investors with those of key stakeholders of its portfolio companies.