Kuwaiti lessor ALAFCO is to convene a shareholder meeting to approve a substantial acquisition by asset management firm Macquarie AirFinance.
ALAFCO states that its board discussed and reviewed, on 29 November, a proposal for the acquisition – valued at $2.215 billion – which includes sale of 53 aircraft from its portfolio.
The lessor adds that the transaction would also involve a framework agreement under which an order for 20 Boeing 737 Max 8 jets would be transferred to Macquarie AirFinance.
ALAFCO placed this specific order for the Max in October 2012.
It states that the company’s directors have resolved to convene a shareholders’ meeting to consider approving the deal, as well as review a “fairness opinion”.
ALAFCO says the primary effects of the transaction include a $710 million increase in cash and equivalents, and a $1.5 billion reduction in dues to financial institutions.
Potential capital commitments will also fall by around $916 million, it adds. ALAFCO puts the accounting loss for the transaction at $61.4 million.
ALAFCO’s portfolio includes long- and short-haul types, among them Boeing 777-300ERs and Airbus A350-900s, plus Airbus A320-family and Boeing 737 jets.