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Avmax Group Inc. has announced that its parent corporation Avmax Holdings Inc. (AHI) has entered into a share purchase agreement dated Jan. 8, 2016 with Sunward Intelligent Equipment Co., Ltd. (Sunward) and Binder Capital Corp. (BCC).
Sunward is a corporation existing under the laws of the People’s Republic of China and is listed on Shenzhen Stock Exchange (stock code: 002097).
Under the terms of the agreement, Sunward will acquire:
- 60 per cent of the issued and outstanding shares of Avmax held by AHI during the spring of 2016 (the “2015 Purchase”);
- 13.33 per cent of the issued and outstanding shares of Avmax held by AHI during the spring of 2017 (the “2016 Purchase”);
- 13.33 per cent of the issued and outstanding shares of Avmax held by AHI during the spring of 2018 (the “2017 Purchase”); and
- 13.33 per cent of the issued and outstanding shares of Avmax held by AHI during the spring of 2019 (the “2018 Purchase” or “the Transaction”). Sunward will own 100 per cent of the issued and outstanding shares of Avmax at the conclusion of the Transaction in 2019.
“Leveraging the strengths of each organization we will gain the necessary capital to continue to grow our diversified revenue streams and enter new markets that will build value for investors and our clients. The agreement will leverage Avmax and Sunward’s combined strengths to expand as a global and fully integrated aviation company,” said John Binder, president and chief executive officer of Avmax.
“Avmax will benefit from Sunward’s geographic footprint and industry connections to grow new revenue opportunities in the areas of aviation. With a foothold in one of the largest markets in the world, China, and with Avmax’s current global locations–the combined companies will contribute to a significant aviation presence,” said Kirk Watson, chief operating officer of Avmax.
“Avmax and Sunward will continue to operate as independent units while taking advantage of synergies between the two companies.”
Due to Canadian Transportation Agency restrictions on foreign ownership, the participation of Sunward in the ownership of Regional 1 Airlines Ltd. (dba R1 Airlines) shall be restricted, pending regulatory approval. Further, the U.S. subsidiaries of Avmax shall be wholly excluded from the Transaction for the time being, pending U.S. regulatory approval.
Completion of the Transaction is subject to a number of standard closing conditions including, but not limited to, applicable Chinese and Canadian regulatory approvals. Where applicable, the Transaction cannot close until the required regulatory approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
