Hong Kong CK Asset to Sell Aircraft Leasing Business for $ 4.28 Billion

HONG KONG, Dec.24 (Reuters) – CK Asset Holdings Ltd (1113.HK) on Friday announced that it has agreed to sell its aircraft leasing business for a total of $ 4.28 billion, as it exits the sector while strengthening its strategic direction during the pandemic.

The Hong Kong property developer said it has agreed to sell all of Accipiter Finance S.à rl and Manchester Aviation Finance S.à rl to Maverick Aviation Holdings Ltd, which is managed by Carlyle Aviation Partners – the The commercial aviation investment and service arm of The Carlyle Group (CG.O).

CK Asset said a total profit of $ 170 million is estimated from the disposals.

“COVID-19 has caused a paradigm shift in the aircraft rental industry,” CK Asset said in a filing with the Hong Kong Stock Exchange.

“Risk and reward dynamics have become volatile and unpredictable, and the industry has experienced increased consolidation, mergers and acquisitions activity to mitigate this volatility,” he added.

The sale of the two commercial fixed-wing aircraft lessors, Accipiter Finance and Manchester Aviation, involves the sale of 125 aircraft owned by the companies, as well as backlog aircraft.

Reporting by Donny Kwok. Editing by Gerry Doyle

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