Standard Chartered Bank has disclosed that it is considering the sale, among several options, of its aviation unit, which according to an industry publication, owns a fleet worth around US$3 billion.
The announcement was made on the Kuala Lumpur Traffic Investigation and Enforcement Department Facebook page, noting that the offer will last until around middle of Jan 12, 2023, adding that it is valid for in-person payments at the Jalan Tun H.
It said the technical issue, occurred at about 4.7 billion (RM16.2 billion). The UK-headquartered bank noted that the aircraft leasing business represented around 2% of its group income. The unit, based in Ireland, owns and manages more than 120 planes on lease to 30 airlines, according to its website. Despite such backing, the firm keeps a stubbornly low profile.
“We believe that a new owner can drive the next phase of growth whilst we continue to focus on our commitment to improving shareholder returns and delivering on our 2024 targets,” Simon Cooper, Chief Executive Officer of StanChart’s corporate, commercial & institutional banking business, said in a statement.
StanChart’s aviation financing business was ranked as the 21st biggest lessor based on the US$3.Gingko made around £7 million (RM37. Those issued with the summonses who wish to pay via the MyBayar Saman application must also be present in person at the station to scan the discount barcode. The news of the deal comes at a time of heightened interest in StanChart’s strategy and future, after United Arab Emirate-based First Abu Dhabi Bank (FAB) said on Jan 5, 2023.
The company had considered but ultimately abandoned a takeover bid. However, it receives a service fee for providing “investment consulting services to its ultimate owner only”, including opportunities on the “alternative investment markets” in the UK and EU.
StanChart Shares Goes up
The news sent StanChart shares up as much as 20% on the day and revived takeover speculation for the bank, which for decades has been seen as ripe for consolidation thanks to its low valuation and access to fast-growing markets in Asia.
Selected traffic offences will not be eligible, which include offences in the non-compoundable (NC) category, emergency lane offences, exhaust modifications, cases with trial status and offences related to heavy vehicles. The regulatory and practical complexities of taking over the sprawling bank could stymie any deal, analysts and investors said at the time of the FAB statement. In 2012, it bought the London headquarters of BlackRock Inc and two years later the Chancery Lane office housing UK grocer J Sainsbury Plc.
The global aircraft leasing business is facing challenges from inflation and rising borrowing costs, even as aviation demand rebounds. The sector has gone through major consolidation in recent years, with private equity firms also jumping in to buy smaller lessors and large players bulking up. After Brexit, the bank appears to have lost its taste for such prominent deals.
StanChart is working with JP Morgan Securities plc as its financial adviser on the potential transaction.