China Investment Corp (CIC) and AVIC Capital Co Ltd have ended talks to acquire Avolon Holdings Ltd, making it likely that the aircraft leasing company will pursue an initial public offering, according to people familiar with the matter. CIC, China's sovereign wealth fund, and AVIC, a Chinese state-owned aerospace and defense company, were in talks to acquire Avolon for between $4 billion and $5 billion, Reuters reported in August. AVIC subsequently confirmed the discussions, cautioning there was uncertainty over the potential deal.Avolon registered with financial regulators in June for an IPO in the United States. The sources said this week that the unsuccessful talks with the Chinese parties made the IPO the most realistic alternative for Avolon's private equity owners to cash out on their investment.The sources asked not to be identified because the discussions are private. Avolon declined to comment, while CIC and AVIC could not immediately reached for comment.Avolon, which is backed by private equity firms Cinven Ltd, CVC Capital Partners Ltd and Oak Hill Capital Partners, as well as Singapore's sovereign wealth fund GIC Pte, has been working with JPMorgan Chase & Co, Morgan Stanley and Citigroup Inc on the IPO.
Citigroup Inc. (Citigroup) is a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. Shares of C fell by 1.24% or $-0.64/share to $51.18. In the past year, the shares have traded as low as $45.18 and as high as $55.28. On average, 15887300 shares of C exchange hands on a given day and today's volume is recorded at 9842858.
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. Shares of JPM fell by 0.48% or $-0.29/share to $59.95. In the past year, the shares have traded as low as $50.25 and as high as $61.85. On average, 12869800 shares of JPM exchange hands on a given day and today's volume is recorded at 8043001.
Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS fell by 1.28% or $-0.4425/share to $34.13. In the past year, the shares have traded as low as $26.41 and as high as $36.44. On average, 8858550 shares of MS exchange hands on a given day and today's volume is recorded at 6670004.
Source
