CALC strengthens aircraft disassembly project

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By admin April 6, 2016 16:45

CALC strengthens aircraft disassembly project

China Aircraft Leasing Group (CALC) has entered into a series of transactions in order to restructure its investment in the establishment of aircraft disassembly centre in Harbin, the PRC (the CADC Project). The share interest of the Group in the CADC Project via Aircraft Recycling International (ARI) will be diluted from 100% to 48%, subject to the independent shareholders’ approval for the proposed restructure. The CADC Project had an aggregate asset value of approximately HK$224 million as at 31 March 2016. The disposal consideration will be consisted of the land, construction cost and its valuation assessed by an independent valuer (whichever is higher), and operating expenses as well as any advance made and interest thereon of the project. It is estimated that the transaction will result in a profit before tax of approximately HK$5 million for the financial year ending 31 December 2016.

Upon completion, CALC through its wholly owned subsidiary Aircraft Recycling International Holdings (ARI Holdings) shall remain as the single largest shareholder of ARI; while other shareholders will include CALC’s founding shareholder Friedmann Pacific Asset Management Limited (FPAM, via China Aero Investments Limited (China Aero)), China Everbright via Neo Modern Limited (Neo Modern), and an independent third party Sky Cheer International (Sky Cheer). The board shall comprise of five directors, of which the Group shall nominate two directors and each of Sky Cheer, China Aero and Neo Modern shall nominate one.

Chen Shuang, Chairman and Chief Executive Officer of CALC said, “The CADC Project is in its development stage and needs considerable internal and external support and advice, including financial, local network and aviation expertise and operational support. This is the second joint investment of China Everbright and FPAM, a combination of financial and aviation expertise offering comprehensive support for the project. We are also glad to bring in Sky Cheer for the local support in Harbin in communications with related government authorities. We believe that the collaboration with partners with respective strengths and expertise will accelerate the commencement of operation of the first purpose built disassembly facility in China, facilitate it to capture the first-mover advantages, and support its sustainable development thereafter.”

Mike Poon, Chairman of FPAM said, “After founded CALC in 2006, FPAM has developed into an investment group focusing on value creation along the aviation industry value-chain after years of effort we have invested in, and the long-term commitment we made to the industry. We are glad to join hands with our longstanding partners again, working towards to make a greater contribution to the development of China’s aviation industry. We believe our first-mover advantages in China, together with our strong network and extensive knowledge gained in the global aviation market, will add value to the strategy formulation and future development of the CADC project.”

admin
By admin April 6, 2016 16:45