AviLease, a jet lessor owned by Saudi Arabia’s Public Investment Fund, is in advanced talks to acquire an aviation finance business from Standard Chartered Plc, people with knowledge of the matter said.
Riyadh-based AviLease and London-listed Standard Chartered are putting the final touches on a deal that could be valued at at least €3.5 billion ($3.7 billion), according to the people.
Discussions are ongoing and may still falter, the people said, asking not to be identified discussing confidential information. Spokespeople for Standard Chartered and PIF declined to comment, while a representative for AviLease couldn’t immediately be reached.
Standard Chartered shares fell as much as 2.1% on Monday. The stock was down 0.8% at 4:25 p.m. in London, giving the company a market value of £18.5 billion ($23 billion).
Dublin-based Standard Chartered Aviation Finance owns and manages more than 120 aircraft and offers services including jet fuel hedging, debt financing and remarketing of unneeded planes. Standard Chartered is selling the asset as part of plans to cut costs and boost shareholder returns.
A deal would quickly help AviLease boost its presence in key leasing markets in the Middle East and other parts of the world. Established last year as part of Saudi Arabia’s push to diversify its economy, AviLease is led by Ted O’Byrne, who previously oversaw Carlyle Group Inc.’s aviation arm. In recent days, AviLease said it acquired 13 aircraft from lessor Avolon Holdings, taking its portfolio to 45 planes.
--With assistance from Dinesh Nair, Jan-Henrik Förster and Harry Wilson.
(Adds shares in fourth paragraph.)
Author: Siddharth Philip, Vinicy Chan and Archana Narayanan
