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.

ALAFCO 737 Max-c-Boeing

Source: Boeing

Orders for a batch of 737 Max jets will be part of the Macquarie transfer

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.