Company gets back control of AerVenture, interest in aircraft portfolio
By Marisa Wong
Madison, Wis., Oct. 25 - AerCap Holdings NV said it sold 29.8 million shares of its stock to Waha Capital PJSC for $105 million in cash, Waha's 50% interest in AerVenture and transfer of a 40% interest in Waha's 16-aircraft portfolio.
The total consideration for the AerCap shares is approximately $380 million based on the $12.63 closing price of AerCap stock on Oct. 22.
Waha's main institutional shareholder is Mubadala Development Co.
In June 2009 Waha became a 50% shareholder in AerVenture. AerCap will now resume full control of AerVenture.
AerCap has agreed to 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 AerCap's board of directors.
The transaction will be completed in mid-November.
"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," said Klaus Heinemann, chief executive officer of AerCap, in a news release.
"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, 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.
"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."
AerCap is an independent aircraft leasing company based in Amsterdam.
Waha Capital is an Abu Dhabi-based investment holding company.
| Issuer: | AerCap Holdings NV
|
| Issue: | Shares
|
| Amount: | $380 million (approximate)
|
| Shares: | 29.8 million
|
| Price: | $12.63
|
| Warrants: | No
|
| Investor: | Waha Capital PJSC
|
| Announcement date: | Oct. 25
|
| Settlement date: | Mid-November
|
| Stock symbol: | NYSE: AER
|
| Stock price: | $12.63 at close Oct. 22
|
| Market capitalization: | $1.54 billion
|
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