By Gina Lee
Investing.com – CK Asset Holdings Ltd (HK:1113) said on Friday that the company had agreed to sell its two aircraft-leasing businesses for $4.28 billion, enhancing its strategic focus and exits this sector during the COVID-19 pandemic.
CK Asset shares in Hong Kong jumped 3.35% to HK$47.75 ($6.12) by 11:34 PM ET (4:34 AM GMT).
Under the deal, the Hong Kong property developer will sell the entire Accipiter Finance S.à r.l. and Manchester Aviation Finance S.à r.l. to Maverick Aviation Holdings Ltd., which is managed by Carlyle Aviation Partners, the Carlyle Group’s commercial aviation investment and servicing arm.
The divestment involves the sale of 125 aircraft held by the two companies, as well as the aircraft in their order books. CK Asset said the disposals would provide “a satisfactory gain” of around $170 million for the company.
“The group considered it an opportune time to exit the aircraft-leasing sector and enhance its strategic focus during the pandemic,” CK Asset said in a filing to the Hong Kong Exchanges and Clearing.
"COVID-19 has caused a paradigm shift in the aircraft leasing sector... the risk and return dynamics have become volatile and unpredictable, and the industry has undergone increased consolidation, mergers and acquisitions activities to mitigate such volatility.”