China's $653bn sovereign wealth fund, China Investment Corp (CIC), is in talks to buy Dublin-based aircraft lessors Avolon for between $4bn and $5bn including debt.
CIC has joined forces with state-owned manufacturer Aviation Industry Corporation of China (AVIC) in its bid for Avolon in a deal potentially worth up to €12bn ($16bn).
Sources close to the discussions have stated that the buyer group has been working on the potential acquisition of Avolon for the past several months, but any deal is still months away. Private equity-owned Avolon is estimated to have an equity value of around $2.5bn. The discussions with CIC are concurrent with Avolon also pursuing an initial public offering. Avolon is backed by private equity firms Cinven Ltd, CVC Capital Partners Ltd and Oak Hill Capital Partners, as well as Singapore's sovereign wealth fund, and has been working with Morgan Stanley and JPMorgan Chase on the potential sale or IPO.
Avolon has raised $7.2bn in capital since its launch in May 2010. It has a fleet of more than 190 aircraft serving 46 customers in 27 countries.
CIC in talks to buy Avolon
