Chinese firm buys 20% stake in Avolon

Chinese aviation and shipping conglomerate HNA Group has acquired a 20% stake in Irish aircraft leasing firm, Avolon, for $429m (€389m). It made the purchase via its Bohai Leasing subsidiary.

The deal is being viewed as a way of strengthening New York-listed Avolon’s relationships in the rapidly growing Chinese aviation market and comes nearly a year after talks with sovereign wealth fund, China Investment Corp failed to result in a takeover.

“The acquisition of a 20% stake in Avolon by Bohai, at a premium to our current share price, reflects their confidence in the outlook for the sector, the attractiveness of the Avolon investment case and the strength of our global franchise,” said CEO Domhnal Slattery.