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On Friday, CK Asset Holdings Ltd (HK:1113) announced that it had agreed to sell its two aircraft-leasing businesses for $4.28 billion, enhancing its strategic focus and exiting this sector during the COVID- 19 pandemic.
By 11:34 p.m. ET, CK Asset’s Hong Kong shares had risen 3.35 percent to HK$47.75 ($6.12). (4:34 AM GMT). The Hong Kong property developer will sell the entirety of Accipiter Finance S.à r.l. and Manchester Aviation Finance S.à r.l. to Maverick Aviation Holdings Ltd., which will be managed by Carlyle Aviation Partners, the Carlyle Group’s commercial aviation investment and servicing arm.
The divestment involves the sale of 125 aircraft owned by the two companies, as well as aircraft on order. According to CK Asset, the disposals will result in 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.”