ST Engineering sold 11 new-generation and current-generation narrowbody aircraft by its Aviation Asset Management business to Keystone Holdings. The sale will allow the group to improve capital efficiency by reducing capital employed. Lease novation transactions related to the sale will be progressively achieved through end 2023.
Keystone is a 50-50 joint venture between ST Engineering’s Commercial Aerospace and Sojitz Corporation.
This sale is consistent with the Group’s strategy of working with partners to grow its Aviation Asset Management business, thereby enabling aircraft lifecycle asset management and support solutions to customers.
Jeffrey Lam, commercial aerospace president, ST Engineering, said: “This transaction allows us to expand our asset management operations while improving capital efficiency. Doing so also enables us to focus on our core strengths in lease management and MRO while working with our valued partners to offer more options to the market.”
Tatsuhiko Niitaka, executive officer, Sojitz Corporation, added: “We have partnered with ST Engineering from 2016 through Keystone, and we are pleased to acquire this attractive portfolio. This will support and expand Keystone’s portfolio, and reinforce our strategy of expanding our presence in the market and establishing relationships with other companies.”