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.
Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!
Oct 21, 2015 - Avolon Shareholders Approve Merger Agreement with Bohai Leasing
Aug 19, 2015 - Aircraft Leasing Market to be Worth $245B by 2021
Aug 14, 2015 - Bohai Leasing Extends Tender Offer for Avolon
Aug 11, 2015 - Avolon Grants Exclusive Negotiation Terms to Bohai
Jul 14, 2015 - Bohai Acquires 20% Strategic Interest in Avolon