GCC investors support aircraft seats joint venture

The interest in the multi million euro joint venture for manufacturing the next generation seats and interiors for the aircrafts has been evidenced by an overwhelming response from the Middle East investors in general and the UAE and GCC investors in particular, given the growth potential offered by fast-expanding global aviation industry, its UAE-based promoter said.Sara Ismail Mohamed, CEO of Abu Dhabi-based Al Bashayer Investment, said: “Investors from different Middle East countries are showing great interest in the project with a number of subscriptions already signed on the first day of the launch. The joint venture holds immense potential for growth and return on investment due to massive expansion and development of the global aviation industry.”The lead investor for the project is IPM Investment LLC (IPM), a Dubai based private equity and venture capital company, offering shares of Euro 36 million in United Seating Technologies (UST) to private investors. IPM has taken a 30 per cent share in United Seating Technologies (UST) and has also contracted to set up a regional sales and aftermarket support facility in Dubai for customers in the Middle East, Africa and the CIS for United Seating Technologies Middle East (UST-ME). IPM has entered into agreement with Corporate Consulta SA of Switzerland for the joint venture project that was structured by and between Aerospace Life-Support Industries and Corporate Consulta, Fribourg-based Swiss corporation, to create United Seating Technologies (UST), Jiahang United Seating Technologies (JUST) and brought in the Italian design firm, Bertone, and aircraft seat engineering company, Optimares, as independent project contract partners.Aerospace Life-Support Industries is a wholly owned subsidiary of “Fortune 500” state-owned enterprise, Aviation Industry of China (AVIC) with ten large aerospace subsidiary companies under its fold. Both Aerospace Life-Support Industries and Corporate Consulta have allocated an initial investment of 100 million euro for Jiahang United Seating Technologies (JUST). The meetings that promoters had with potential investors in the region has been a huge success in creating awareness about the project and its benefits to the investors and the global aviation industry, especially the Middle East, one of the fastest growing region for acquisition of aircrafts by the airlines. The promoters are looking at obtaining the commitment of a select group of investors to subscribe for 28.8 million shares in the company for a total commitment of Euro 36 million. Al Bashayer Investment, Abu Dhabi-based investment company, is the placement agent, while Maples Fund Services, based in DIFC, is the administrator and custodian. From / Gulf Today