Bohai leasing is set to acquire a 20 per cent strategic interest in international aircraft leasing company Avolon for $429 million (€388 million).
The Chinese leasing and financial services company affiliated with HNA Group made the announcement on Tuesday.
It will make a cash tender offer for 20 per cent of the outstanding common shares at a price of $26 per common share. The Transaction will be open to all Avolon shareholders.
The cash tender offer represents a 14.5 per cent premium to Avolon’s volume-weighted average price and a 30 per cent premium to Avolon’s initial public offering at $20 per share in December 2014.
The deal will allow Bohai to accelerate its exposure to the global aircraft leasing sector, it said in a statement.
Bohai's strong presence in the aviation and transportation finance and leasing sectors in China will help strengthen Avolon's relationships in the rapidly growing Chinese aviation market.
Dómhnal Slattery, Avolon chief executive, said: “The acquisition of a 20 per cent stake in Avolon by Bohai, at a premium to our current share price, reflects their confidence in the outlook for the sector, the attractiveness of the Avolon investment case and the strength of our global franchise.
“We are proud to welcome Bohai as a strategic investor in Avolon and look forward to developing our relationship.”
