Bohai Leasing to acquire Avolon in a transaction valued at $7.6bn

Business, Finance | Fri 4 Sep | Author – Business & Finance flight plane air stock

International aircraft leasing company Avolon has announced that it is to be acquired by Bohai Leasing, a unit of Chinese aviation and shipping conglomerate HNA Group.

Avolon shareholders will receive $31 in cash for each Avolon common share they hold, which represents a 31% premium to Avolon’s closing price on July 13th, 2015.

Terms were unanimously approved by Avolon’s board of directors,

The transaction is expected to close by the first quarter of 2016.

Denis Nayden, chairman, Avolon said: “Avolon has delivered significant returns for all shareholders and we believe Bohai are the right shareholder for the Avolon business in the next stage of growth. We believe Bohai will enhance Avolon’s profile, positioning and relationships in the Chinese aviation market – a market which we believe offers one of the most compelling growth opportunities in global aviation over the next two decades.”

Dómhnal Slattery, Avolon’s CEO, noted: “I would like to thank all of our shareholders and, in particular, our sponsors who have been with us on this journey since our foundation in 2010. Avolon would not be the leading industry player it is today without the commitment and hard work of our team who have built a business with an enterprise value of $7.6bn. It is a remarkable achievement and one of which we are all very proud. We look forward to the strategic development of Avolon under Bohai’s leadership.”

Chris Jin, CEO of Bohai, commented: “Avolon has delivered remarkable growth over the past five years to become a leading industry franchise with a distinct business model, and the company is a strong complement to our existing investment in the aircraft leasing sector.”

Hal Hayward, managing director, Bravia Capital, added: “We are pleased to have been able to increase the stake that Bohai previously contracted to acquire to a full buyout of the company. Under Bohai ownership, Avolon will gain increased access to the fast growing Chinese market, strong support for continued growth worldwide and clear competitive advantages that come with additional size, scale and diversity.”