Aircraft lessor, Avolon, is entering exclusive talks with Chinese player, Bohai, that could lead to a $2.63 billion take over of the Irish company.
Avolon said on Monday that it has agreed with Bohai to enter exclusive talks about a possible acquisition of the company for $32 a-share, or just over $2.63 billion.
The talks are set to last until September 7th. Avolon said that the pair will negotiate definitive agreements on terms that they have already discussed and accepted.
“Bohai’s offer is subject to completion of satisfactory and customary due diligence,” Avolon’s statement notes.
The Chinese group will place a $50 million good faith deposit into an escrow account within two days, adding to $25 million already held in connection with the offer made by Bohai for the Irish company last month.
Avolon will receive the $75 million in circumstances where it is willing to go ahead with a deal but the prospective buyer is not.
“Upon execution of definitive documents in connection with the transaction, the $75 million deposit will be increased by Bohai to $250 million, payable to Avolon in the event the transaction is not consummated under certain circumstances,” the statement added.
Avolon also pointed out that there are no assurances that a deal will be done or that its board will approve Bohai’s offer.
