Irish-based aircraft leasing firm in talks over sale to Chinese company

Irish-based aircraft leasing company Avolon is in talks with China’s AVIC Capital Company over the possible sale of the business, the Chinese company said in a statement to the Shanghai Stock Exchange.

AVIC Capital said its financing arm is negotiating with the relevant parties and has begun reviewing Avolon’s finances with a view to a takeover of the company, which was founded by Clare-born entrepreneur Dómhnal Slattery.

A spokesperson for Avolon declined to comment on the reports when contacted yesterday.

The deal is believed to be worth in the region of $4bn to $5bn (€2.99bn to €3.73bn) including debt, with Avolon estimated to have an equity value of around $2.5bn.

“The company [AVIC Capital] has not reached a binding agreement or offer with relevant parties regarding the acquisition of Avolon and cannot guarantee the completion of the deal,” the statement read.

The company also dismissed claims that earlier reports of a $16.1bn buyout as “not true”.

Earlier reports also claimed that the interested buyer has been working on the potential acquisition for the past several months but that any deal still remains months away.

In March, it was reported that Avolon — which is backed by private equity firms Cinven Ltd, CVC Capital Partners Ltd, and Oak Hill Capital Partners, as well as Singapore’s sovereign wealth fund — was preparing for an initial public offering.

A spokesperson for Avolon again declined to confirm or deny these reports.

The aircraft-leasing company also announced the purchase of 21 Boeing and Airbus aircraft in July.

The firm has a fleet of more than 190 aircraft serving 46 customers in 27 countries and has raised $7.2bn in capital since its launch in May 2010.

AVIC Capital said last September that it was interested in buying overseas lessors as it looks to meet rising domestic travel demand.