Two Chinese investors go head to head in a battle to buy Dublin-based aircraft leasing group Avolon in a deal that could be valued at $ 2.5 billion. Bohai Leasing, a unit of aviation and shipping Chinese company HNA, has offered to buy Avolon of $ 31 per share, two weeks after reaching an agreement to take a 20 percent to $ 26.
The offer, announced by Avolon traded on NYSE on Friday, it came after an unsolicited takeover approach $ 30 per share. This is understood to AVIC Capital, a subsidiary of Aviation Industry Corp of China. AVIC made a tentative move to buy Avolon a year ago.
Avolon floated on the Nasdaq last December at $ 20 Avolon said Friday that its board "has not accepted or rejected, whether the offer and continues to carefully evaluate these offers with its financial and legal advisors". It said it had authorized its financial advisers, led by JPMorgan, to continue talks with the two bidders.
Avolon shares rose 15.5 percent to $ 28.73 at the close of trading in New York on Friday. The company did not identify the second suitor and refused to comment beyond a statement it issued.
An agreement on the price of the offer, either represent a good return for investors Avolon. Its main shareholders are private equity groups Cinven, CVC and Oak Hill, who collectively own more than half of its assets. Founder and CEO Dómhnall Slattery holds a 1.36 percent.
Mr. Slattery is a former GPA executive who became head of the finance business aviation RBS after the sale of that business to another bank in the UK. Established Avolon in 2010, one of the fastest growing companies leasing aircraft in the world and part of a group of similar companies based in Dublin led by alumni of GPA, which pioneered the industry in the 1980s of It based at Shannon Airport in the west of Ireland. Avolon has 153 aircraft leased to 56 airlines around the world from its base in Dublin, and has another 107 on order. In a note to clients, Andrew Light, an analyst at Citi, said an acquisition of Avolon to $ 31 per share could re-rate the sector. Avolon said it would assess a price-earnings ratio of 14.2 times estimated 2015 earnings before taxes, compared with an average for the sector of 8.8 times.