Bank of China has emerged as a leading
contender to buy RBS Aviation Capital, following the Royal Bank of
Scotland’s announcement the aircraft leasing arm is up for
sale.
The 83% state-owned bank postponed a previous
sale last year.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Bank of China has been identified as the most
likely of eight interested parties, which according to newspaper
reports also include General Electric (GE) and private equity firm
Terra Firma, led by financier Guy Hands, as reported in Leasing Life earlier this
month.
The Dublin-based aircraft leasing business,
the world’s fourth largest aircraft lessor by fleet value, has a
fleet of around 260 jetliners and is valued at between £4.2bn
(€4.8bn) and £4.9bn (€5.6bn).
A spokesman for RBS said: “The sale process
for RBS Aviation Capital is under way following significant
expressions of interest from potential bidders in the business in
recent months.
“RBS Aviation Capital’s management team has delivered strong
business and financial performance over the past decade and it
remains among the top four commercial aircraft lessors by fleet
value, with one of the youngest fleets of narrow-bodied aircraft
globally.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe spokesman said the bank would not be commenting further during
the sales process, which is being run by Goldman Sachs.
A spokesperson for the Bank of China declined
to comment on the bank’s reported interest.
The unit first went up for sale in 2009 after
being identified by RBS as a non-core business but, following a
review from Goldman Sachs, which also managed the initial sale, the
bank decided it would be in shareholders’ interests to wait until
it would fetch a higher price when trading conditions improved.
At the time the division said it had placed a
£5bn (€5.8bn) order for 95 passenger aircraft which Peter Barrett,
RBS Aviation Capital chief executive, said reflected strong demand
for leased aircraft.
RBS created the business in 2001 when it
acquired small Irish lessor IAMG.
grant.collinson@vrlfinancialnews.com
