Japanese financial services group ORIX, through its subsidiary ORIX Aviation Systems has agreed to acquire a 30% stake in Ireland-based Avolon Systems from Bohai Capital, the company said.
The Transaction is subject to customary closing conditions and Bohai shareholder approval. Bohai´s largest shareholder, HNA Group, has provided its commitment to the Transaction. The Transaction is expected to complete in the fourth quarter of 2018.
The Transaction implies an Avolon enterprise value of USD 23.7bn, as at 31 March 2018.
Avolon said it will benefit from ORIX´s experience and relationships as the company continues to build Avolon´s financial strength and industry franchise.
ORIX Corp. (TSX: 8591) (NYSE: IX) is an opportunistic, diversified, innovation-driven global powerhouse with a proven track record of profitability. Established in 1964, ORIX at present operates a diverse portfolio of businesses in the operations, financial services, and investment spaces. ORIX´s highly complementary business activities span industries including: energy, private equity, infrastructure, automotive, ship and aircraft, real estate and retail financial services. ORIX has also spread its business globally by establishing locations in a total of 38 countries and regions across the world (As of March 31, 2018).
ORIX Aviation owns and manages over 200 aircraft and leases them to more than 70 airlines located in over 30 countries. ORIX Aviation is headquartered in Dublin with offices in Hong Kong and a team of 85 professionals with 10 bn of aircraft assets under management. For the 12 months to 31 March 2018,
Avolon provides aircraft leasing and lease management services. Avolon is a wholly-owned, indirect subsidiary of Bohai Capital Holding Co., Ltd., a Chinese public company listed on the Shenzhen Stock Exchange (SLE:000415). Avolon is the world´s third largest aircraft leasing business with an owned, managed and committed fleet, as of 30 June, 2018 of 890 aircraft.