According to the announcement released by Bohai Leasing (000415.SZ), in order to further strengthen the company's market share and competitiveness in the global aviation leasing industry, and improve the company's profitability, the company's subsidiary, Avolon, plans to acquire 100% equity of aircraft leasing company CAL through its wholly-owned subsidiary AAHL.

On September 12, 2024 (New York time), Avolon and its wholly-owned subsidiary AAHL signed the Purchase and Sale Agreement and related ancillary agreements with Castlelake Aviation LLC (hereinafter referred to as 'the seller') and related parties. Avolon plans to purchase 100% equity of CAL through cash payment. The final transaction price of this transaction will be determined based on the net assets of the target company on the day before the delivery date (prepared in accordance with US generally accepted accounting principles) and adjusted amount calculated according to the mechanism specified in the Purchase and Sale Agreement. Based on the book value of CAL's net assets of 1.416 billion US dollars as of March 31, 2024, after deducting the relevant aircraft to be divested before delivery and corresponding liabilities, as well as cash and other assets exceeding 38 million US dollars, the book value of net assets of the target company to be acquired is approximately 1.241 billion US dollars. After subtracting the adjustment amount calculated according to the mechanism specified in the Purchase and Sale Agreement, the purchase price of 100% equity of CAL is approximately 1.221 billion US dollars (equivalent to about 8.673 billion Chinese yuan based on the central parity rate of 1:7.1030 between the US dollar and the Chinese yuan). The funds for this acquisition come from Avolon's own funds or self-raised funds.

This transaction is conducive to further leveraging the scale effect and synergies between the existing aircraft leasing business and the target company's aircraft leasing business, utilizing Avolon's extensive financing channels and financing cost advantages, enhancing the profitability of the target company's aircraft assets, and strengthening the company's continued profitability. It is beneficial to further enhance the relationship between the company and its airline customers, and improve the company's market share and competitiveness in the global aviation leasing industry.

After the completion of this transaction, Avolon's own, managed, and ordered aircraft fleet will reach 1,147 aircraft, including 647 self-owned aircraft, 40 managed aircraft, and 460 ordered aircraft. The average remaining lease term of the fleet is approximately 7.2 years, and the average age of the aircraft is approximately 6.1 years. This will further consolidate Avolon's position as the world's second-largest aircraft leasing company and provide aircraft leasing services to 144 airline customers in 64 countries and regions worldwide. (Calculated based on Avolon's fleet situation as of June 30, 2024)