50 SKY SHADES - World aviation news

Unit of China's HNA to buy Avolon Holdings for $2.5 billion

Download: Printable PDF Date: 05 Sep 2015 06:09 (UTC) category:
Publisher:
Unit of China's HNA to buy Avolon Holdings for $2.5 billion - Finance publisher
Tatjana Obrazcova
Source: Reuters

Irish aircraft leasing firm Avolon Holdings Ltd (AVOL.N) said it agreed to be acquired for about $2.5 billion by Bohai Leasing Co Ltd (000415.SZ), a unit of Chinese aviation and shipping conglomerate HNA Group.

Avolon shareholders will receive $31 per share in cash, which is lower than the $32 per share the companies were discussing in exclusive talks in August. Avolon said the lower price was a result of "significant volatility across global equity markets."

The deal, which including the assumption of debt has a total enterprise value of about $7.6 billion, is expected to close by first quarter of 2016.

Chinese lessors, mostly backed by state-owned banks, have been expanding in recent years as large carriers such as Hainan Airlines Co Ltd (600221.SS), Air China Ltd (0753.HK), China Eastern Airlines Corp Ltd (0670.HK) and China Southern Airlines Co Ltd (1055.HK) open more routes at home and overseas.

Bohai Leasing initially offered to buy 20 percent of Avolon for $26 per share in July, but later decided to purchase the entire company after learning of a rival bid for Avolon.

Bohai Leasing entered into exclusive talks with Avolon in August after raising its offer to $32 per share.

Avolon, founded by leasing entrepreneurs Domhnal Slattery and John Higgins in 2010, went public last December.

The company owned or managed 152 aircraft at the end of June and had over 100 more on order.

Avolon shares were trading at $29 after the bell.

Up to Thursday's close, the stock had risen about 21 percent since July 13, when Bohai Leasing first offered to buy a stake in Avolon.





Recommended

AIRCAIRO places order for 15 Airbus A320neo aircraft

AIRCAIRO, Egypt’s National growing Air-carrier, has signed a firm order for 15 Airbus A320neo aircraft at the El Alamein International Airshow 2026. The agreement marks an important mi...

Jet Agent: Why operating history should influence every international aircraft acquisition

Aircraft from emerging markets can represent excellent acquisition opportunities but understanding where and how an aircraft operates should shape the pre-purchase inspection and wider due diligence p...

Daher Aircraft is ranked No. 1 in Pro Pilot magazine’s Product Support Survey for the sixth consecutive year

Daher Aircraft has reaffirmed its leadership in turboprop aviation, securing the No. 1 position for the sixth consecutive year in Professional Pilot magazine’s Product Support Survey. In the 202...

La Compagnie to introduce nonstop all-business-class service between New York and Düsseldorf

La Compagnie, the 100% Smart Business Class airline, today announced its intention to inaugurate a new nonstop transatlantic route linking Newark Liberty International Airport (EWR) and Düsseldor...

Android Apps development in Riga, Latvia