CNA – Standard Chartered is considering a sale, among several options, of its aviation unit, which according to an industry publication owns a fleet worth around USD3.7 billion.
The United Kingdom-(UK) headquartered bank said yesterday the aircraft leasing business represented around two per cent of its group income.
The unit, based in Ireland, owns and manages more than 120 planes on lease to 30 airlines, according to its website.
“We believe that a new owner can drive the next phase of growth whilst we continue to focus on our commitment to improve shareholder returns and delivering on our 2024 targets,” Chief Executive Officer of StanChart’s corporate, commercial and institutional banking business Simon Cooper said in a statement.
StanChart’s aviation financing business was ranked as the 21st biggest lessor based on the USD3.7- billion market value of its fleet in publisher Airfinance Journal’s 2022 rankings.
The news of the deal comes at a time of heightened interest in StanChart’s strategy and future, after United Arab Emirate-based First Abu Dhabi Bank (FAB) said on January 5 it had considered, but ultimately abandoned, a takeover bid.
The news sent StanChart shares up as much as 20 per cent on the day and revived takeover speculation for the bank, which for decades has been seen as ripe for consolidation thanks to its low valuation and access to fast-growing markets in Asia.
The regulatory and practical complexities of taking over the sprawling bank could stymie any deal, analysts and investors said at the time of the FAB statement.
