Singapore wealth fund buys stake in Barrington jet firm
SINGAPORE wealth fund GIC – which owns 16pc of Irish telecoms firm Eir – has agreed to buy a 30pc stake in global aircraft management company BBAM as it eyes increasing demand for jets and air travel in Asia.
BBAM shareholders include former Aer Lingus chairman Colm Barrington, pictured.
GIC did not disclose how much it’s paying, but it’s certain to be at a premium to the $165m that was paid by Canadian private equity firm Onex in 2012 for a 50pc stake in BBAM.
BBAM’s management team owns the other 50pc of the company. GIC will acquire shares from both the management team and Onex.
BBAM manages and services the fleet of Dublin-based aircraft-leasing firm Fly Leasing, which is listed on the New York stock market. Mr Barrington is the chief executive of Fly Leasing, but an employee of BBAM, which provides his services to Fly Leasing. BBAM shareholders also own 14pc of Fly Leasing.
Fly Leasing has a fleet of 81 aircraft worth $3bn, mostly single-aisle Airbus A320 family jets and Boeing 737s. It told investors yesterday that it plans to complete $750m (€628m) worth of jet acquisitions a year as it boosts its portfolio, and that it has more than $2bn of buying power.
Continuing growth in air travel within Asia has increased the interest of investors there in the leasing sector.
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