Bohai Leasing signs definitive agreement to acquire Avolon at an enterprise value of USD7.6 billion

HNA Group unit, Bohai Leasing has taken another step towards becoming a major global aircraft lessor, with the Chinese company signing a definitive merger agreement with Avolon earlier in Sep-2015.

The deal prices the publicly listed Irish lessor at USD31 per share, representing a purchase price of about USD2.6 billion. The transaction has a total enterprise value of approximately USD7.6 billion.

Bohai agreed to a modest discount to the USD32 per share commitment the parties announced when they entered an exclusive negotiating agreement in early Aug-2015. The price cut, totalling about USD82 million, is due to "significant volatility across global equity markets", which have particularly affected markets in China. A formal agreement is due to be signed in 1Q2016.