Sumitomo Mitsui Finance and Leasing (SMFL) is to take a controlling stake in engine leasing joint venture Sumisho Aero Engine Lease (SAEL) as part of moves to further develop the business.

SAEL was jointly established in 2013 by Sumitomo Corporation - which holds a 90% stake - and German engine specialist MTU. Sumitomo has now struck an agreement under which SMFL will acquire 65% of the engine lease specialist - leaving Sumitomo with a 25% stake. The deal awaits final approvals from the relevant authorities.

"Following this share transfer, SMFL and Sumitomo intend to expand the scale of SAEL’s operations, and raise its profile in the rapidly growing airline industry by broadening the scope of its aviation businesses in partnership with other companies in SMFL and its shareholder group, including SMBC Aviation Capital," SMFL says.

It adds it intends to make SAEL a consolidated subsidiary from April 2019.

Source: Cirium Dashboard