Datuk Shahriman Shamsuddin (left) and Mohammed Husain Ahmed, CEO of RoyalJet (right), at the heads of agreement signing ceremony on June 23, 2023.

KUALA LUMPUR (July 11): Sapura Resources Bhd is disposing of its aviation business at the Subang Airport to Abu Dhabi-based private jet operator RoyalJet LLC for an undisclosed sum.

In a statement on Tuesday (July 11), Sapura Resources said the two parties signed a conditional heads of agreement on June 23.

“RoyalJet intends to establish a presence in the Southeast Asian private aviation market, by designating Subang International Airport as its regional hub for private charters and for their maintenance, repair, and overhaul (MRO) business. This strategic move represents RoyalJet’s geographic expansion into the Asian market,” said the statement.

It said RoyalJet chief executive officer (CEO) Mohammed Husain Ahmed had expressed his interest in Sapura Resources’ growth prospects in Asia and saw the discussion with the Malaysian company as a solid foundation for building a stronger presence in the region.

“We are keen to expand our business in Asia. The ongoing discussions with Sapura Resources’ aviation business offers promising opportunities,” he said.

Sapura Resources managing director Datuk Shahriman Shamsuddin said he is looking forward to the disposal discussion with RoyalJet.

Both companies believe that the proposed deal is in tandem with Malaysia’s current plans to rejuvenate the private aviation industry, which would benefit Selangor’s economic development around Subang Airport.

Malaysia Airports Holdings Bhd managing director Datuk Iskandar Mizal Mahmood said the potential deal complements the efforts to rejuvenate Subang Airport.

“Our focus is to position Subang Airport as a premium city and regional airport, as well as further develop the general and business aviation sectors in Malaysia.

“The presence of RoyalJet in Subang Airport will create momentum in attracting more international aviation players into the ecosystem,” he said.

Meanwhile, Malaysia External Trade Development Corp CEO Sharimahton Mat Saleh said international players will stand to gain many advantages from cooperation with Malaysian MRO companies, which will boost the exports of these high-value services in the region.

Sapura Resources is 51.03%-owned by Sapura Holdings Sdn Bhd, which is also a substantial shareholder of Practice Note 17 company Sapura Energy Bhd.

Shares of Sapura Resources closed unchanged at 42 sen on Tuesday, valuing the company at RM57.93 million.