LONDON — China’s HNA group is in a bid battle for Avolon, one of the world’s largest aircraft lessors, just days after agreeing the $2.8 billion acquisition of Swissport, the world’s largest airport cargo handler.
HNA’s Bohai Leasing unit offered to buy Avalon for $31 per share on Friday, valuing the Irish company at around $2.55 billion.
The offer came two weeks after the acquisitive Chinese logistics and transport group paid $26 per share for a 20 percent stake in Dublin-based Avolon and twenty four hours after it clinched the Swissport deal.
Beijing-based Bohai Leasing’s bid followed an earlier $30 per share offer from an unnamed company, believed to be led by AVIC Capital, a subsidiary of Aviation Industry Corp, in partnership with China Investment Corp., the nation’s sovereign wealth fund.
Avolon, whose main shareholders are private equity funds, has a fleet of 153 aircraft on lease to 56 airlines and a further 107 on order. It has two aircraft on lease to HNA’s Hainan Airlines, China’s fourth largest carrier.
HNA, which owns Chinese shipbuilder Jinhai Heavy Industry, also expanded its shipping interests in the past week. Its HNA Logistics unit signed a memorandum of understanding with Greece’s Dorian LPG to explore opportunities in the liquefied petroleum logistics market, including LPG ships.
HNA, which is also active in tourism and financial services and has 110,000 employees around the world, generated revenue in excess of $25 billion in 2014. It has $72 billion of assets.
Contact Bruce Barnard at [email protected].
