Avolon chief executive Domhnal Slattery is set to pocket €30.8m from the sale of the company to China’s Bohai Leasing for €2.23bn.
The deal will make multi-millionaires of Mr Slattery’s senior management colleagues at Avolon with six, including Mr Slattery, set to get $67.94m (€61.13m).
Avolon is the second aircraft leasing firm that Mr Slattery has established that has been sold off for billions.
In 2012, RBS Aerospace was sold to a Japanese bank for €5.85bn and the RBS firm was spawned from International Aviation Management, a company established by Mr Slattery.
The significant volatility in global equity markets as a result of fall in Chinese stocks resulted in the deal going through for $31 per share rather than the indicative offer of $32 per share last month. This knocked $86m off the purchase price from €2.61bn to €2.53bn.
However, the purchase price represents a 55% premium to Avolon’s initial public offering at $20 per share in December 2014 and a 31% premium to Avolon’s undisturbed closing price on July 13 prior to the announcement of Bohai’s initial intention to acquire a 20% stake in Avolon.
Bohai yesterday paid a $200m deposit on top of a deposit of $75m already paid. A further $75m will be paid by September 15 bringing to $350m the amount Bohai will have put down in deposit for the deal which is expected to conclude in the first quarter of 2016.
“Avolon would not be the leading industry player it is today without the commitment and hard work of our team who have built a business with an enterprise value of $7.6bn.
“It is a remarkable achievement and one of which we are all very proud. We look forward to the strategic development of Avolon under Bohai’s leadership,” Mr Slattery said yesterday.
“We believe Bohai are the right shareholder for the Avolon business in the next stage of growth. We believe Bohai will enhance Avolon’s profile, positioning and relationships in the Chinese aviation market,” Avolon chairman, Denis Hayden said.
Slattery set up the firm in 2010 and has developed it to a fleet of 153 owned and managed aircraft, with another 107 on order from Boeing and Airbus.
He began working in aviation in the mail room of Tony Ryan’s GPA in the 1980s and has had a roller coaster ride in business since then.
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