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Chinese, Japanese suitors eye $4 billion sale of CIT plane leasing unit

  • Region:

    Japan, Tokyo

  • Sector:

    Insurance

  • Deal Size:

    $3 billion to $4 billion

  • Buy Side Company:

  • Sell Side Company:

    CIT Group Inc
  • Target Company:

US lender CIT Group Inc has kicked off the sale of its aircraft leasing assets by inviting more than a dozen entities to consider bidding, including China’s HNA Group, Industrial and Commercial Bank of China’s ICBC Leasing, and Japan’s Orix Corp, according to media reports quoting sources familiar with the matter. The sale of CIT‘s Commercial Air unit could fetch between $3 billion to $4 billion, with Century Tokyo Leasing, sovereign wealth fund China Investment Corp, CDB Leasing, plus some global pension funds and insurers, also invited to bid for the assets, the reports added. The strong line-up of Chinese and Japanese suitors in the auction underscores the growing importance of cashed-up Asian lessors who are pouring billions of dollars into a sector that offers stable, long-term and dollar-based revenue. It also signifies the shifting balance of the global aviation industry to Asia, which is seen as the engine of growth. First-round bids for CIT‘s leasing arm, which owns, finances and manages a fleet of more than 350 planes, are due in June, according to the media report. CIT Commercial Air has assets valued at around $11 billion.

Tags:

CIT Group Inc,HNA Group,Industrial and Commercial Bank of China Ltd,ICBC Leasing,Orix Corp,Century Tokyo Leasing,CIT Commercial Air,Asset Sale,Aircraft Leasing