Bohai Leasing entered into a definitive merger agreement with Avolon at a price of $31 cash per common share. The new bid was below the one made in August for the Irish aircraft leasing company, which was for $32 per share.

Under the terms of the transaction, which was unanimously approved by Avolon’s board of directors, all Avolon shareholders will receive $31 in cash for each Avolon common share they hold, in a transaction with a total enterprise value of approximately $7.6 billion.

To provide greater certainty of value and reflecting its commitment to the transaction, Bohai will increase its deposit by $100 million to a total of $350 million. Bohai has already paid a deposit of $75 million. A further $200 million will be paid on September 4, 2015 and the final $75 million will be paid by September 15, 2015.

The transaction is expected to close by the first quarter of 2016.