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Bohai Leasing to Acquire 20% Interest in Avolon

July 14, 2015, 06:00 AM
Filed Under: Aircraft

Avolon, the international aircraft leasing company, and Bohai Leasing Co., Ltd., the Chinese leasing and financial services company affiliated with HNA Group, announced that they have entered into an agreement under which Bohai will make a cash tender offer for 20% of the outstanding common shares of Avolon at a price of US$26 per common share (the “Transaction”). The Transaction will be open to all Avolon shareholders.

The cash tender offer of US$26 per share represents a 14.5% premium to Avolon’s volume-weighted average price last week (July 6 – 10, 2015) and a 30% premium to Avolon’s Initial Public Offering at US$20 per share in December 2014, reflecting the substantial embedded equity value of Avolon’s existing portfolio and its sector-leading platform.

This strategic investment by Bohai reinforces Avolon’s position as a leading independent aircraft lessor and allows Bohai to more rapidly expand its exposure to the global aircraft leasing sector. 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.

The Directors of both Avolon and Bohai unanimously support the Transaction and believe this strategic investment by Bohai will deliver long-term value for shareholders in both companies.

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