|Posted: Tue Dec 19, 2006 10:45 pm Post subject: Bank of China acquires the biggest aircraft leasing firm in
Bank of China acquires the biggest aircraft leasing firm in Asia
BEIJING, Dec. 18 (UNI)
The Bank of China has acquired thelargest aircraft leasing company in Asia, marking an unprecedentedexpansion overseas.
The nationís second largest lender announced on its website that it had paid 965 million U.S. dollars in cash to wholly own Singapore Aircraft Leasing Enterprise (SALE), which was established in 1993.
Shareholders of the leasing company included Singapore Airlinesand WestLB AG, with 35.5 percent ownership each, as well as the Temasek Holdings and the Government of Singapore Investment Corporation (GIC), which each held 14.5 percent.
Spokesperson for the Bank of China (BOC) Wang Zhaowen said the acquisition formed part of the BOCís overall corporate strategy inexpanding its scope of diverse financial services and increasing its diversification into non-interest income.
SALE, which had a diversified customer base in 20 countries across six continents, would continue to be run by its existing management team based in Singapore led by chief executive officer Robert Martin.
The BOC will leverage on its global client resources and institutional network in China and overseas to support SALEís global business development, particularly in Chinaís aviation sector, which is one of the fastest growing in the world.
Insiders said the takeover would help the bank preserve its asset value and offset risks incurred from the appreciation of theyuan.