Avolon (NYSE: AVOL) said it has entered into a definitive merger agreement to be acquired by Bohai Leasing Co., Ltd. (SZSE: 000415) at a price of USD31 cash per common share.
Under the terms of the transaction, which has been unanimously approved by Avolon´s board of directors, all Avolon shareholders will receive USD31 in cash for each Avolon common share they hold, in a transaction with a total enterprise value of approximately USD7.6 billion.
USD31 per share represents a 31 percent premium to Avolon´s undisturbed closing price on July 13, 2015 of USD23.73 per share, the closing price prior to the announcement of Bohai´s initial intention to acquire a 20 percent stake in Avolon. USD31 per share also represents a 55 percent premium to Avolon´s initial public offering at USD20 per share in December 2014.
The transaction is subject to customary conditions including receipt of certain required regulatory approvals and the approval of Avolon and Bohai´s shareholders.
To facilitate the approval process, affiliates of CVC Capital, Cinven, Oak Hill Capital, GIC and their respective syndicate investors have agreed to vote their shares in favour of the Transaction at the shareholder meeting to be held to approve the transaction and HNA Group, Bohai´s largest shareholder, has agreed to vote its shareholding in Bohai in favour of the Transaction. The Transaction is not subject to any conditions related to financing or Chinese capital control approvals. The purchase price is guaranteed by HNA Group.
The transaction is expected to close by the first quarter of 2016.
Avolon is an international aircraft leasing company, headquartered in Ireland, with regional offices in China, Dubai, Singapore and the United States. Avolon provides aircraft leasing and lease management services.
Bohai Leasing owns a portfolio of world class equipment and transportation asset leasing companies and is a majority controlled subsidiary of the HNA Group of PRC.