Aviation news analysis
50 SKY SHADES - World aviation news

Chinese, Japanese suitors eye $4 billion sale of CIT plane leasing unit: sources

Download: Printable PDF Date: 30 May 2016 01:43 category:
Publisher:
Chinese, Japanese suitors eye $4 billion sale of CIT plane leasing unit: sources - Finance publisher
Tatjana Obrazcova
Country: China
Source: Reuters

U.S. lender CIT Group Inc has kicked off the sale of its aircraft leasing assets by inviting more than a dozen entities to consider bidding, including China's HNA Group, Industrial and Commercial Bank of China's ICBC Leasing, and Japan's Orix Corp, sources familiar with the matter said.

The sale of CIT's Commercial Air unit could fetch between $3 billion to $4 billion, with Century Tokyo Leasing, sovereign wealth fund China Investment Corp, CDB Leasing, plus some global pension funds and insurers, also invited to bid for the assets, the sources added.

The strong line-up of Chinese and Japanese suitors in the auction underscores the growing importance of cashed-up Asian lessors who are pouring billions of dollars into a sector that offers stable, long-term and dollar-based revenue. It also signifies the shifting balance of the global aviation industry to Asia, which is seen as the engine of growth.

First-round bids for CIT's leasing arm, which owns, finances and manages a fleet of more than 350 planes, are due in June, said the sources, who declined to be named as the information has not been publicly disclosed. CIT Commercial Air has assets valued at around $11 billion.

CIT, among the world's top 10 lessors, has said it is looking to sell or spin-off its Commercial Air unit by the end of the year as it focuses on domestic banking. "We do not comment on price or participants in the process," a CIT spokesman said when asked about the auction.

A spokeswoman from China's HNA Group said the company was not aware of a possible bid. Orix, Century Tokyo Leasing and ICBC Leasing, a unit of ICBC, declined to comment. CIC did not comment. CDB Leasing could not be reached for comment.



Loading comments for Chinese, Japanese suitors eye $4 billion sale of CIT plane leasing unit: sources...


Recommended

Esterline Showcases Technology Portfolio at Farnborough 2018

Esterline’s display includes interactive exhibits showcasing cockpit displays, helicopter simulators, aircraft connectivity and human machine interfaces. Esterline Corporation, a leading spec...

Diamond Aircraft DART-550 World Debut at FarnboroughAirshow 2018

Just two months after its maiden flight on the 3rd of May, Diamond Aircraft’s new variant of the Diamond Aircraft DART series, the DART-550 makes its public debut at Farnborough Airshow 2018....

Air Service Basel receives certification from Mexican Civil Aviation Authority

Swiss-based maintenance facility, Air Service Basel, has received authorisation from the Mexican Civil Aviation Authority to support small and mid-size business aircraft registered in Mexico including...

AW169 helicopter grows stronger in UK EMS market with selection by Magpas Air Ambulance

• Specialist Aviation Services (SAS) will customise and operate an AW169 on behalf of Magpas Air Ambulance starting from spring 2019    • This will be the ninth UK-based AW169 f...