Waha acquires 20% stake in AerCap

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By admin October 26, 2010 13:58

Waha acquires 20% stake in AerCap

Aside from announcing more than 200% increase in profits, Waha Capital has acquired a 20% stake in the Dutch aircraft lessor AerCap. Under the deal, Waha will acquire approximately 29.8 million shares in AerCap in exchange for $105 million in cash, Waha’s 50% interest in AerVenture and the transfer of a 40% interest in Waha’s 16-aircraft portfolio.  The total consideration for the shares in AerCap is approximately $380 million based on the New York Stock Exchange closing price of AerCap’s shares on Friday, October 22.

Under the terms of the agreement, AerCap will provide all management services for Waha’s aircraft portfolio in return for servicing fees, and will open a representative office in Abu Dhabi.

Following the share issuance, Waha will own 20% of AerCap and be entitled to nominate two candidates to the Board of Directors of AerCap Holdings. The completion of the transaction is scheduled for mid-November 2010.

Klaus Heinemann, CEO of AerCap, said: “AerCap’s recent history of cooperation with Abu Dhabi-based Waha Capital has resulted in Waha taking a substantial ownership position in AerCap. We are convinced that the diversification of AerCap’s ownership structure through a well-respected shareholder based in Abu Dhabi combined with the strong credentials of Abu Dhabi’s growing commitment to the global aerospace sector will represent a substantial long term benefit for AerCap’s stakeholders.” Klaus Heinemann continued: “The current transaction also provides AerCap with an attractive new source of capital with a considerable cash investment upon closing.”

Salem Rashid Al Noaimi, CEO of Waha Capital said: “Through this transaction, Waha solidifies its existing partnership with AerCap and consolidates its investments in the aviation sector through a leading global player. Furthermore, Waha diversifies its current aviation exposure by investing in a larger and more modern aircraft fleet while benefiting from AerCap’s world-class expertise.” Salem Rashid Al Noaimi continued: “This transaction represents another tangible step in the execution of our vision of building value through strategic partnerships. We are confident that this partnership will be a successful one and that Waha will strengthen AerCap’s presence in the MENA region’s rapidly expanding aviation market.”

admin
By admin October 26, 2010 13:58
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