By P.R. Venkat
A consortium involving private equity firm Carlyle Group and Canada Pension Plan Investment Board is acquiring 125 aircraft from CK Asset Holdings Ltd. for $4.28 billion.
CK Asset said that the Covid-19 pandemic has caused a paradigm shift in the aircraft leasing industry and that the risk and return dynamics had become volatile and unpredictable.
“Following an internal consolidation of the group’s aircraft leasing business, the group considered it an opportune time to exit the aircraft leasing sector and enhance its strategic focus during the pandemic,” it said.
The sale will allow the company to unlock the underlying value of its aircraft portfolio and provide the group with the ability to reallocate capital to other investment opportunities, it said.
The Hong Kong-listed company expects to record a divestment gain of 170 million U.S. dollars.
Write to P.R. Venkat at venkat.pr@wsj.com
