Waha Capital, an Abu Dhabi based investment firm, announced that it has signed an agreement with New York Stock Exchange-listed and Dutch-based AerCap Holdings to acquire 20% stake in AerCap, in a transaction valued at $380 million.
As DubaiBeat.com reported last year, Waha Capital is looking at acquisitions of up to $1 billion in the maritime, financial and leasing services sector.
Waha Capital is listed in the Middle East Investors Directory with the code OR56.
Their full press release follows
Waha Capital PJSC announced that it has signed an agreement today with New York Stock Exchange-listed and Dutch-based AerCap Holdings N.V. ("AerCap"), under which Waha will acquire approximately 29.8 million shares in AerCap, Waha's 50% interest in AerVenture and the transfer of a 40% interest in Waha's 16-aircraft portfolio.
The total consideration for the shares in AerCap is approximately $380m based on the New York Stock Exchange closing price of AerCap's shares on Friday, 22 October 2010.
Following the share issuance, Waha will own 20% of AerCap and be entitled to nominate two candidates for the Board of Directors of AerCap Holdings N.V.
Under the terms of the agreement, AerCap will provide all management services for Waha's aircraft portfolio in return for servicing fees, and will open a representative office in Abu Dhabi.
Waha's 16-aircraft portfolio consists of Airbus A330 and Boeing 777 wide body aircraft, Airbus A320 and A321, Boeing 737 and Bombardier regional jet aircraft. The wide body aircraft represent approximately 75% of the portfolio by value. The portfolio has an average age of 5.6 years by value and all aircraft are on lease with an average lease term of 82 months.
The completion of the transaction is scheduled for mid-November 2010.
Salem Rashid Al Noaimi, CEO of Waha Capital said, "Through this transaction, Waha solidifies its existing partnership with AerCap and consolidates its investments in the aviation sector through a leading global player. Furthermore, Waha diversifies its current aviation exposure by investing in a larger and more modern aircraft fleet while benefiting from AerCap's world-class expertise."
Salem Rashid Al Noaimi continued, "This transaction represents another tangible step in the execution of our vision of building value through strategic partnerships. We are confident that this partnership will be a successful one and that Waha will strengthen AerCap's presence in the MENA region's rapidly expanding aviation market."
Klaus Heinemann, CEO of AerCap, said, "AerCap's recent history of cooperation with Abu Dhabi-based Waha Capital has resulted in Waha taking a substantial ownership position in AerCap. We are convinced that the diversification of AerCap's ownership structure through a well-respected shareholder based in Abu Dhabi combined with the strong credentials of Abu Dhabi's growing commitment to the global aerospace sector will represent a substantial long term benefit for AerCap's stakeholders."
Klaus Heinemann continued, "The current transaction also provides AerCap with an attractive new source of capital with a considerable cash investment upon closing."
AerCap's successful relationship with Waha began in 2008 when Waha Leasing purchased an Airbus A330-200 and an A320-200 from AerCap.
In June 2009, Waha became a 50% shareholder in AerVenture. Under the new agreement signed today between AerCap and Waha, AerCap will resume full control of AerVenture. AerVenture, established in 2006 with a focus on new Airbus A320 family aircraft, has a fleet of 47 A320 family aircraft plus firm orders for a further seven aircraft.
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