Status: Upcoming/New Filing
Acquirer: Bohai Financial Investment Holding Co., Ltd. (China)
Acquired: C.I.T. Leasing Corporation (U.S.); C2 Aviation Capital, Inc. (U.S.)
Value: Approx. US$10 Billion
Industry: Commercial Aviation
On October 6, 2016, CIT Group Inc., and its wholly owned subsidiary C.I.T. Leasing Corporation, Delaware corporations, entered into a Purchase and Sale Agreement with Bohai Financial Investment Holding Co., Ltd. (“Bohai”), a company organized under the laws of the People’s Republic of China, Bohai’s wholly owned subsidiary Ireland-based Avolon Holdings Limited (“Avolon”) and Avolon’s wholly-owned subsidiary Park Aerospace Holdings Limited, both companies organized under the laws of the Cayman Islands. (See CIT’s Form 8-K SEC Filing, Oct. 12, 2016; CIT Form8-k, Ex. 2.1, SEC Filing, Oct. 12, 2016); CIT’s Press Release, Oct. 6, 2016.) According to the agreement, CIT Group will sell CIT Commercial Air, its commercial aircraft leasing business by selling 10% of the equity to C2 Aviation Capital, Inc., to Avolon, a competing international aircraft leasing company and a wholly-owned subsidiary of Bohai, for approximately US$10 billion. (See CIT Press Release, Oct. 6, 2016.) Under the agreement, the parties are to submit a “draft notification to CFIUS under Section 721 by no later than November 15, 2016 and . . . a definitive notice to CFIUS under Section 721 by no later than November 30, 2016 following the date of the receipt of comments, if any, from the U.S. Department of Treasury with respect to the draft notification . . .” See CIT Form8-k, Ex. 2.1, Section 5.3, SEC Filing, Oct. 12, 2016).