Li Ka-shing’s CK Asset to sell aircraft leasing businesses for US$4.3 billion to Carlyle Group unit

Name: How Li Ka-shing became Hong Kong's richest man
Uploaded: 2021-12-24T09:30:17.000Z
Duration: 2 min 40 s
Description: How Li Ka-shing became Hong Kong's richest man

Hong Kong tycoon’s flagship company will pocket a gain of US$170 million by selling Accipiter Finance and Manchester Aviation Finance to Maverick Aviation Holdings

Deal comes after Li Ka-shing increased his stake in CK Asset on Monday

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Li Ka-shing’s interest in CK Asset has risen from 46.39 per cent to 46.40 per cent. Photo: Sam Tsang

Daniel Ren

Published: 5:30pm, 24 Dec 2021

CK Asset Holdings said on Friday that it will sell its aircraft leasing business for US$4.3 billion to realise a “satisfactory gain” while enhancing its strategic focus during the Covid-19 pandemic.

Hong Kong tycoon Li Ka-shing’s flagship company will pocket a gain of US$170 million by selling Accipiter Finance and Manchester Aviation Finance to Maverick Aviation Holdings, CK Asset said in a stock exchange filing.

“The disposal would allow the group to unlock the underlying value of its aircraft portfolio and realise a satisfactory gain, creating value for its shareholders and allowing the group to allocate its capital in other investment opportunities,” the company said.

The aircraft leasing business has been vulnerable to the Covid-19 pandemic, which has caused a paradigm shift in the sector, CK Asset said. The industry had seen increased consolidation amid efforts to mitigate volatility ever since the outbreak started wreaking havoc on global businesses in early 2020.

The company said the net proceeds from the asset sale were intended to be used by the group as general working capital.

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How Li Ka-shing became Hong Kong's richest man

The deal came after Li Ka-shing increased his stake in CK Asset on Monday. A company wholly-owned by the billionaire bought a total of 156,000 shares in CK Asset at an average price of HK$47.3442 per share on December 20, according to a statement by CK Asset. Li’s interest in the company has risen from 46.39 per cent to 46.40 per cent, as a result.