Aircraft leasing company Avolon has agreed to enter negotiations with China’s Bohai Leasing over a takeover bid that potentially values the Irish company at around $2.6 billion (€2.37 billion).
The Dublin-based firm said it had entered an agreement with Bohai giving it the exclusive right to negotiate its acquisition, at a price of $32 per share.
The exclusivity period on these talks will last until 7 September, during which times the sides will seek to negotiate definitive terms for a deal.
Bohai Leasing had previously sought to buy a 20% stake in Avolon at a price of $26 per share, however late last month the Irish company received a takeover bid offering $30 per share.
Bohai responded to this with its own takeover offer, priced at the time at $31 per share.
Avolon said its previous agreement to sell a 20% stake to Bohai remained in place, however its expiration has now been extended until 18 September in order to allow for the takeover talks to be completed.
If a new deal is agreed the initial proposal will be terminated, it said, however it also cautioned that there were no assurances that a takeover would be agreed or approved by either side.
Avolon leases aircraft to a number of international airline and freight companies; including Ryanair, DHL and Air France.
In the first half the year the company had a net income of almost $105m, based on revenues of almost $360m.
