China Sovereign Fund CIC In Talks To Buy Avolon
Published on Aug 12 2014 8:12 AM in General Industry
China Investment Corp (CIC), the $653 billion sovereign wealth fund, is in talks with the Ireland-based aircraft leasing company Avolon regarding a possible takeover worth $5 billion (including debt).
CIC is working with with Aviation Industry Corporation of China (AVIC), a state-owned aerospace and defence firm, in its effort to buy Avolon, which provides aircraft-leasing and lease-management services to airlines and aircraft investors, a spokesperson stated.
CIC’s interest is demonstrative of strong demand for aircraft assets on the part of Asian buyers at a time when the region has become the world’s fastest growing market: Asian airlines are taking advantage of the spending power of travellers.
Avolon has raised $7.2 billion in capital since its launch in May 2010. It has a fleet of over 190 aircrafts serving 46 customers in 27 countries.