TALLINN, May 3 -- China's largest investment deal in Estonia so far was completed on Thursday with a full acquisition and change of shareholder structure of a Tallinn-headquartered aircraft maintenance company.
Worth 43 million euros (about 51.43 million U.S. dollars) of equity value, the deal made China's Guangzhou Hangxin Aviation Technology the parent company and strategic investor of Magnetic MRO (Maintenance, Repair and Operation) to expand its global MRO presence.
Alo Ivask, Chairman of the Board of Enterprise Estonia, welcomed the investment deal and hailed the fast growth and high-level quality of Magnetic MRO in the past years, expecting a bright future for the company after Hangxin's acquisition.
Li Chao, Chinese ambassador to Estonia, termed the acquisition deal as strong-strong union to promote and deepen bilateral cooperation, which implements the Belt and Road Initiative.
Over the past five years, Magnetic MRO has grown from a labor intensive maintenance facility into a global Total Technical Care maintenance and asset management organization, whose major shareholder is a private equity firm BaltCap.
Established in 1994 in Guangzhou, south China's Guangdong Province, Hangxin is a privately-owned company providing aircraft component maintenance services, technical solutions in the field of aircraft engineering and safety to the Chinese aviation industry.