Bank of China (BOC) and two partners will make a
bid for Singapore Aircraft Leasing Enterprise (SALE), the largest aircraft
leasing enterprise in Asia, according to the China Securities Journal.
The newspaper cited a source said that BOC, together with Mitsubishi Trading
Corporation and Dubai Aerospace Enterprise, planned to offer 1 billion U.S.
dollars for Singapore Aircraft.
It is the first time the BOC has been involved in an overseas takeover
operation in the non-financial sector, the reprot said.
BOC has hired Morgan Stanley and UBS to advise it on the deal, according to
A SALE spokesman said the deal may not go through before March 2007.
SALE, which leases aircraft to 34 airlines in the world, has been profitable
for 13 consecutive years. One of its shareholders, Singapore Airlines, saw
profits decline in the third quarter by 15 percent.
Analysts say the aircraft leasing business is the only high-margin activity
in the aviation sector at the present time, and the deal will give BOC an
opportunity to develop the aircraft leasing business at a time when domestic
airlines lack both aircraft and funds.
(For more biz stories, please visit Industry Updates)