HNA’s Avolon to buy CIT plane-leasing business for US$10 billion
Deal to be completed in the first quarter, and is expected to create the world’s third largest aircraft leasing business
Avolon Holdings, the aircraft leasing company owned by China’s shipping-and-airline giant HNA Group, has agreed to buy the aircraft leasing unit of CIT Group for US$10 billion.
When it’s completed in the first quarter of next year, after regulatory and shareholder approval, the transaction will create the world’s third largest aircraft leasing business with Avolon’s fleet expanded to 910 aircraft valued at over US$43 billion, the Ireland headquartered company said.
Avolon was acquired by HNA-controlled Bohai Leasing Co for US$7.6 billion in January.
New York-based CIT is a financial-services holding company, and the leasing operation being bought includes 334 owned and managed aircraft, and 133 aircraft on order or committed,
Avolon will be four times larger following this transaction than it was 10 months ago when it de-listed from the NYSE, under the ownership of Bohai Capital and HNA
Avolon will pay US$10.0 billion for US$9.4 billion of net asset value as of 30 Jun 2016, which represents a premium of 6.7 per cent, the company said.
“Avolon will be four times larger following this transaction than it was 10 months ago when it de-listed from the NYSE, under the ownership of Bohai Capital and HNA,” it said in a statement. “Avolon’s stated ambition is now to become the global number 1 in aircraft leasing,”.