Carlyle Aviation Partners to acquire Fly Leasing for £1.71 billion

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Mar 29, 2021
  • Carlyle Aviation Partners to acquire Fly Leasing for £1.71 billion.
  • The deal offers Fly Leasing stockholders £12.35 per share in cash.
  • The agreement is expected to close in the third quarter of 2021.

Carlyle Aviation Partners (NASDAQ: CG) said on Monday that it will acquire Fly Leasing Ltd (NYSE: FLY) for £1.71 billion (enterprise value). The deal values the Irish aircraft leasing company at £376.78 million and offers its stockholders £12.35 per share in cash. This represents a 29% premium on the per-share price at which Fly Leasing closed the regular session in the stock market on Friday.

Fly Leasing shares jumped more than 25% in premarket trading on Monday. The stock, however, remained almost flat in the morning session. Including the price action, Fly Leasing is trading at £12.29 per share after recovering from a low of £2.97 per share in late March 2020.

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In comparison, the stock had started the year at a per-share price of £6.76. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a list of the top few to make selection easier for you.

Carlyle Aviation Partners’ president comments on the acquisition

Co-founder and president Robert Korn of Carlyle Aviation Partners commented on the news on Monday and said:

“We believe in the long-term resilience of the aviation industry. History tells us when we get past a crisis, we will see a return of traffic as people return to travelling. We think we are buying this at an attractive price.”

In separate news from the United States, Ark Invest said on Monday that its new space ETF will start trading on Tuesday.

The Coronavirus pandemic wreaked havoc on demand for air travel last year as people were restricted to their homes. The health emergency has so far infected more than 120 million people worldwide and caused over 2.7 million deaths.

The deal is expected to close later this year

The deal is expected to close in Q3 of 2021. Carlyle will use its SASOF V fund to complete the acquisition, for which, RBC Capital Markets will serve as its financial adviser. The subsidiary of the American multinational private equity company, Carlyle Group, was founded in 2002 and currently values its assets under management at £4.42 billion.

Carlyle Group opened at £26.61 per share on Monday and is currently trading at £26.47 per share. The Washington-based financial services corporation had started the year at a per-share price of £22.54. At the time of writing, it is valued at £9.38 billion and has a price to earnings ratio of 37.60.

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