China’s sovereign wealth fund China Investment Corp (CIC) is reportedly in talks to buy private equity-backed Dublin-based aircraft leasing company Avolon Aerospace Leasing.
The company could be valued at $4bn to $5bn including debt, said Reuters, citing people familiar with the matter. The company’s equity value stands at around $2.5bn.
CIC has joined forces with Chinese aerospace and defence company Aviation Industry Corporation of China (AVIC) in its bid.
CIC and AVIC have been working on a potential acquisition of Avolon for several months but any deal is still month away, said the sources.
In the meantime, Avolon, which is backed by CVC, Oak Hill and Cinven, is also working on an IPO.
Earlier this year Avolon secured a new $500m secured loan facility to back its growing fleet of aircraft.
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