AVATION PLC — M&A Activity 2015

Dec 10, 2015

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RNS Number : 6447I

Avation PLC

10 December 2015

LSE: AVAP

AVATION PLC

("Avation" or the "Company")

MANDATE FOR NEW AIRBUS A321 AIRCRAFT IN 2016

Avation PLC (Singapore, 10th of December 2015, LSE: AVAP), the commercial passenger aircraft leasing company, reports that Vietjet Air has announced, subject to final contract, that it has mandated Avation for the lease of  four new Airbus A321 aircraft during 2016, with an option for a fifth.  The aircraft will be on lease for a twelve-year term. The lease rates and other terms are typical for transactions of this type. Avation is seeking to arrange European export credit agency supported finance for the purchase of these aircraft.

Avation PLC Executive Chairman Jeff Chatfield said "Avation continues to diversify its fleet. By the end of April 2016 Avation believes that approximately 50 per cent of its aircraft book value will be jet aircraft. Avation believes that larger high-capacity, narrow body modern commercial aircraft such as the Airbus A321 represent an attractive long term investment class. In addition to this mandate, Avation owns three and has on order a further two Airbus A321 aircraft.

"Vietjet Air currently has 26 Airbus aircraft in operation and has recently carried its twenty-five millionth passenger. Avation will consider its option for the fifth aircraft in due course."

Further announcements will be made in due course in relation to this transaction.

The full text of Vietjet Air's announcement reads as follows:

"Vietjet cooperates with Avation PLC through a lease agreement on 5 new A321 aircraft

(Ho Chi Minh City, December 10, 2015) - Vietjet is pleased to announce that, subject to final contract, it has mandated Avation PLC, a London-listed aircraft leasing company, to deliver 4 new Airbus A321s over the coming 12 months under a sale-leaseback transaction with a 5th aircraft on option. 

These five aircraft are from Vietjet's Airbus order book. The Aircraft are new and due to be delivered from Airbus in May, July, August, September and November 2016."

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ENQUIRIES

Avation Plc's website is www.avation.net

Vietjet's website is www.vietjetair.com

Avation PLC: Jeff Chatfield (Executive Chairman)	+65 6252 2077
Blytheweigh: Wendy Haowei / George Yeomans / Fergus Lane	+44 20 7138 3204

This information is provided by RNS

The company news service from the London Stock Exchange

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