Orix Corporation buys into HNA Group controlled lessor Avolon
Aviation to services conglomerate , the HNA Group, has agreed to sell 30% of its leasing subsidiary, Avolon, to Japan’s Orix Corporation for US$2.2 billion. Read More » Avolon is controlled by Bohai Capital which in turn is majority-owned by China’s HNA Group. In the August announcement of the sale, Orix said subject to government approvals, the deal should be finalized by November.
“By virtue of the acquisition of the shares of Avolon, Orix aimes to achieve sustainable long-term growth of its business by way of strengthening its access to the manufacturer order positions that Avolon holds and also further expand its aircraft leasing business investment universe,” said an Orix statement.
Bohai acquired Avolon in early 2016 and then merged it with Hong Kong Aviation Capital. In the final quarter of that year it successfully bid for the CIT Group’s aircraft leasing unit for what was reported at the time to be an all-cash transaction of US$10 billion.