RSS   Newsletter   Contact   Advertise with us

Avolon Holdings to buy CIT Group's unit for $10 billion

Staff Writer | October 7, 2016
Avolon Holdings, part of China's acquisitive HNA Group, said it agreed to buy the aircraft leasing business of CIT Group for $10 billion.
CIT Group
Acquisition   $10 billion for the $9.4 billion
The intention is to create the world's third-largest aircraft leasing company.

Avolon said it will pay $10 billion for the $9.4 billion net asset value of CIT Group's leasing unit, representing a premium of 6.7 percent.

CIT Group's shares were up 7.58 percent at $39.16 in extended trading.

The transaction will be funded by a combination of Avolon's cash, new equity contributed by HNA Group-controlled Bohai Leasing Co Ltd (000415.SZ) and debt financing of $8.5 billion.