Chinese consortium buys 4.7 billion dollars for world's second largest aircraft leasing company

A recent US international group (AIG) announced that it had reached an agreement with the Chinese consortium led by Hong Zhengding, chairman of the Xinhua Trust, to sell the 90% per cent of its international leasing finance Company (ILFC) to the latter, The acquisition, which involves an amount of $4.753 billion trillion, will be the largest Chinese corporate equity takeover in the United States, given regulatory approval. According to people close to the deal, the Chinese buyer, Jumbo, who bought ILFC, is a company that is dedicated to the acquisition of the Xinhua Trust, the National Aviation Industry Fund and P3 Investments three Chinese companies, " Previously, some Chinese media reported that one of Jumbo's investors is ' China Aviation Industry Fund ', which is not in fact, in fact, the ' National Aviation Industry Fund ' is one of Jumbo's investors. It is understood that the National Aviation Industry Fund is the earliest approved by the Chinese government, the largest aviation industry funds, but also the only one of the consortium with industrial background of the organization. Currently, Jumbo and AIG have reached the equity purchase agreement (SPA), and AIG has submitted the equity purchase agreement to the Securities and Exchange Commission (SEC) in filed form on December 10, 2012. And the Xinhua trust, the National Aviation Industry Fund and P3 Investments Co., Ltd. have signed a letter of commitment to support jumbo to buy shares of ilfc80.1% for 4.23 billion dollars. In accordance with the equity purchase agreement, Jumbo also has the right to purchase ilfc9.9% shares for an additional 523 million dollars (when the subscription is exercised). According to the person familiar with the matter, the investment consortium is expected to add new investors, as well as the situation of new investors, after obtaining approval from the relevant regulatory authorities and using the jumbo to buy ILFC another 9.9% stake. It is understood that the international financial Leasing Company (ILFC) is currently the world's second largest aircraft leasing company, owns or operates more than 1000 aircraft, in the United States has 450 employees. At the end of the three quarter of this year, ILFC's book value was $7.9 billion. A one-third of the aircraft fleet operating in the Chinese market belongs to the leasing company, which may also be an important reason for Chinese buyers to fancy the acquisition.