July 14 (Reuters) - Bohai Leasing Co Ltd has agreed to acquire a 20 percent stake in Avolon Holdings Ltd for $429 million, a deal that allows the Chinese firm to rapidly expand its exposure to the global aircraft leasing sector.
Bohai’s cash tender of $26 per Avolon share represents a 14.5 percent premium to its volume-weighted average price last week and a 30 percent premium to its IPO price of $20 per share in December, the two firms said in a statement.
The cash tender offer, open to all Avolon shareholders, is expected to be launched at the end of the month after the deal gains the approval of Bohai’s shareholders, it added.
The directors of both companies support the deal, the companies said.
Bohai, is part of HNA Group, China’s fourth-largest aviation group. Avolon has its headquarters in Ireland. (Reporting by Fang Yan and Matthew Miller in Beijing; Editing by Edwina Gibbs)