DENIS O’BRIEN’S aviation leasing company Aergo Capital has concluded the sale of its interest in Johannesburg-based subsidiary Safair to a Dublin-based company called ASL Aviation.
This involved the sale of about $250 million of assets, including Safair, 13 jet aircraft and a 28 per cent stake in maintenance associate Jetworx.
It is understood that ASL paid less than $100 million to buy the business in an all-cash transaction. It has also assumed the liabilities attached to the aircraft.
Aergo acquired Safair in December 2008 for $80 million in cash. The sale price indicates that Mr O’Brien has made a tidy return on the business.
Safair has an operational business based around the use of Hercules aircraft in Africa; and a lease finance arm.
The portfolio of aircraft purchased by ASL comprises five Boeing 737-800s that are contracted to South African Airways; five Airbus A300s, which are used by DHL; and three ATR 72-500s, which are with Jet Airways in India.
"This deal fits well with our business," ASL's chief executive Hugh Flynn told The Irish Timesyesterday.
It is understood that Aergo is planning to reinvest the proceeds of the sale into other “acquisition opportunities” in the UK, continental Europe and South Africa.
The company’s business now comprises 25 aircraft on lease to customers and 15 aircraft that are managed for third parties.
ASL, which is Belgian-owned, now has three airlines in its locker – Dublin-based cargo operator Air Contractors; cargo and charter passenger company Europe Airpost in Paris; and Safair.
Mr Flynn said the company ran the rule over Aer Arann recently, when the airline was seeking new investment. “We did. But we thought it wasn’t appropriate for us at the moment,” he said.
But Air Contractors is leasing a fourth ATR aircraft to Aer Arann, which will support the airline’s growth, he added.
ASL employs 1,200 staff worldwide, has 90 aircraft and turnover of about €400 million.