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

Textron Aviation celebrates 500th Cessna Citation CJ4 delivery as Gen3 era advances

Textron Aviation delivered the 500th delivery of a Cessna Citation CJ4 series business jet, underscoring more than a decade of customer confidence in the company’s largest light jet an...

FAI strengthens long-range charter fleet with second Global 6000 in a year

FAI rent-a-jet has further strengthened its fleet with the addition of a Bombardier Global 6000 (D-AFAN, MSN 9471). The acquisition was completed just five weeks after the LOI was signed, underli...

Horizon Airways doubles down on fleet modernization with order for second Tecnam P2012 STOL

Queensland-based Horizon Airways has signed an order for a second Tecnam P2012 STOL aircraft. Slated to join the Australian fleet by the end of 2026, this subsequent order rapidly...

Do228 NXT makes its African debut at El Alamein Airshow in Egypt and AAD 2026 in South Africa

In September 2026, General Atomics AeroTec Systems will put a major focus on Africa. With two trade show appearances, the German aircraft manufacturer is highlighting the strategic importance of...

Android Apps development in Riga, Latvia