CIT Group Looking To Sell Its Commercial Air Unit For As Much As $4 Billion

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Shares of
CIT Group Inc.CIT
were trading higher by more than 1 percent on Tuesday following a report by
Reuters
that the company is looking to sell its aircfrat leasing assets which could fetch $3 billion to $4 billion. Interested bidders include more than a dozen entities, including private equity and investment firms from Asia. Specifically, China's HNA Group, Industrial and Commercial Bank of China and Japan's Oriz Corp are all vying for the unit. First round bids are expected to come in June, the report stated. Reuters noted that CIT has been looking to spin-off its Commercial Air unit to better focus on its domestic banking business. Meanwhile, the unit is attractive to investors as airlines are now "open minded" about leasing options compared to the past. "There is a lot of capital you need to employ for owning aircraft but for leasing planes in the short-term, you don't need much money to get the same type of assets to use," Johnny Lau, an aircraft leasing consultant told Reuters. Reuters also added that Chinese banks are "seeking to become global champions" in the airline business, especially in an industry that provides around 40 percent of the planes used by airliners across the world.
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Posted In: NewsRumorsAircraft LeasingCIT GroupHNA GroupIndustrial and Commercial Bank of ChinaJohnny LauOriz Corp
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