Bohai Leasing has emerged as a possible buyer for Dublin-based AWAS, sources at the ISTAT Europe conference in Prague have indicated.
The Chinese lessor, which is majority owned by HNA Group, recently disclosed its acquisition of Avolon, also Dublin-based, in a $7.6 billion deal. It appears likely that Avolon will be merged with Bohai's existing leasing entity, Hong Kong Aviation Capital.
Avolon has denied any discussions with AWAS or parent Terra Firma, and says it remains focused on its transaction with Bohai.
AWAS was unavailable for comment.
Terra Firma is working with Goldman Sachs and Deutsche Bank to sell AWAS, sources say. ICBC Leasing and Chinese manufacturer AVIC have also expressed interest in the lessor, they say.
The purchase of AWAS would allow Bohai to further expand its aviation leasing scope, a strategy it has been working on since 2013 through wholly owned subsidiary Tianjin Bohai Leasing.
HNA is a Fortune Global 500 company headquartered in the Chinese city of Haikou. Core businesses span across aviation, tourism, and logistics. The group also controls several Chinese carriers and in July agreed to acquire ground and cargo handling company Swissport for $2.8billion.
The acquisition of Avolon and AWAS could enhance Bohai's bargaining power and influence in the global aviation industry, particularly with the manufacturers, as it would bring together airlines, leasing and ground handling within one group.
Bohai is the only lessor listed on the Chinese A-share stock market.
HNA has grown its international presence over the years through mergers and acquisitions, and had annual revenues of approximately $21 billion last year. Total assets at year-end were some $76 billion.
Source: Cirium Dashboard
