Thursday, 5 January 2012

Sale of RBS Aviation leads to bidding war between banks

It has been reported that China Development Bank and Japan's Sumitomo Mitsui Financial Group are in the final stages of  a bidding war for RBS Aviation, one of the world's top five commercial airline leasing firms.

RBS, which is 83% owned by the British government (or its citizens) is looking to shed RBS Aviation as part of efforts to pay back the bailout from 2008. The likely sale price is expected to be between $7.3bn and $7.5bn. It is also believed that US bank Well's Fargo remain in the bidding process while Australian firm Macquarie is no longer part of the bidding process.

Aviation industry sources have said that RBS Aviation has 466 aircraft under its ownership and management and that the business is attractive to investors as it offers steady demand and healthy cash flow.

The sooner you get this cash paid back the better.

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