50 SKY SHADES - World aviation news

Two Chinese Suitors Exploring Takeover of Jet Lessor AWAS

Download: Printable PDF Date: 25 Sep 2015 07:44 (UTC) category:
Publisher:
Two Chinese Suitors Exploring Takeover of Jet Lessor AWAS - Finance publisher
Tatjana Obrazcova
Country: China
Source: Bloomberg

AWAS Aviation Capital Ltd., the lessor being sold by buyout firm Terra Firma Capital Partners, has drawn interest from two Chinese suitors in an auction that could fetch more than US$5 billion, people familiar with the matter said.

ICBC Financial Leasing Co. and Aviation Industry Corp. of China are exploring a takeover of Dublin-based AWAS, said the people, who asked not to be identified because the discussions are private. Terra Firma, which owns 75 percent of AWAS, is working with Deutsche Bank AG and Goldman Sachs Group Inc. on the process, said the people.

Purchasing AWAS would help a Chinese buyer take advantage of a local air-travel market projected to top the U.S. as the world's largest. AWAS also is a tempting target for Chinese companies because it would be a way to invest outside of the country as the yuan weakens, one of the people said.

AWAS has more than 250 commercial planes under its portfolio, with more than 100 airline customers in 49 countries, according to its website. ICBC Financial Leasing is China's biggest aircraft lessor, while the finance unit of state-owned AVIC said in 2011 it was interested in acquiring foreign leasing companies to expand.

ICBC Financial Leasing didn't immediately respond to calls and an email seeking comment, while AVIC spokesmen couldn't be reached on their mobile phones. Representatives of Terra Firma didn't respond to e-mailed messages, while Deutsche Bank and Goldman Sachs declined to comment. Canada Pension Plan Investment Board, which owns the other 25 percent of AWAS, also declined to comment.

This month, China's Bohai Leasing Co. agreed to buy Dublin-based lessor Avolon Holdings Ltd. at an enterprise value of US$7.6 billion.

Terra Firma said in March that it would explore opportunities to exit its AWAS investment in the coming years, after Macquarie Group Ltd. agreed to buy a portfolio of 90 aircraft from AWAS for US$4 billion.

ICBC Financial Leasing is owned by Industrial & Commercial Bank of China Ltd., the largest lender in the country.



Loading comments for Two Chinese Suitors Exploring Takeover of Jet Lessor AWAS...


Recommended

Emperor Aviation - flying through the pandemic and working in a new normal - MACE2021

The final day of MACE 2021 was a good time to catch up with Razvan Stefan, CEO of Emperor Aviation malta Ltd,  aircraft management and charter company, member of the Board of Malta Business Aviat...

Embraer and Royal NLR MoU for strategic collaboration relating to aerospace research

Embraer and the Royal Netherlands Aerospace Center have signed a Memorandum of Understanding for a potential strategic collaboration relating to aerospace research. The research areas include tec...

The development of first Europe test vertiport in Paris - Skyports

Skyports is developing Europe’s first test vertiport in France, as a significant step towards launching commercial Advanced Air Mobility (AAM) services in time for the 2024 Paris Olymp...

Attention - Ryanair UK launches summer 2022 schedule

Ryanair announced its highly anticipated UK S’22 schedule – opening 24 new routes (over 500 in total) to a host of exciting European destinations. UK holidaymakers will rejoice w...