Singapore-based lessor, Avation, is heading for a sale. It announced that the company is undertaking a
a comprehensive review of its “strategic options” to “maximise value for shareholders”. These options
under consideration include merger and acquisition activity, an aircraft portfolio sale or the potential sale of the company.
Avation has appointed Wells Fargo Securities as its financial adviser to assist it with its review. The company is now considered to be in a formal “offer period” and has confirmed that it is in preliminary
discussions with one interested party about a potential sale of the company.
Avation shares climbed 7% on the news to 289.9p in morning trading.
Avation’s fleet comprises 49 aircraft, with 18 airline customers in 15 countries, as of 31 December 2019. The average fleet age (weighted average inclusive of finance leases) was 3.7 years, with remaining lease term (weighted average inclusive of finance leases) at 7.1 years, and unearned contracted revenue associated with the fleet was US$921 million.
Avation has six ATR 72-600 aircraft on order, with two ATR 72-600 aircraft to be delivered to Braathens by March 2020. The company also has 25 ATR 72-600 aircraft purchase rights, and one engine available for lease from mid-January 2020