On Monday, aircraft leasing provider AerCap Holdings NV announced that a subsidiary of General Electric (NYSE:GE) will undertake a sizable divestment of approximately $2.44 billion in the aviation leasing giant through an underwritten public offering.
AerCap disclosed that GE Capital U.S. Holdings will sell roughly 40.7 million shares of the company at a price of $59 per share. This offering represents an upsize from the previously communicated figure of 32.4 million shares.
This transaction comes on the heels of a March 2023 sale in which GE divested 18 million shares, resulting in AerCap’s stock experiencing a 3% decline in extended trading on Monday.
In March 2021, GE announced its intention to gradually divest its stake, which currently stands at 33.6%, according to the most recent data from the London Stock Exchange Group (LSEG). This decision followed AerCap’s acquisition of GE’s aircraft leasing unit in a landmark $30 billion deal.
Furthermore, on Monday, AerCap confirmed its plans to repurchase approximately 15.3 million shares valued at around $878 million, with a buyback price set at $57.53 per share. The Dublin-based company intends to finance this buyback using its available cash reserves.
GE Capital has extended an option to the underwriters, granting them a 30-day window to acquire up to an additional 6.1 million ordinary shares.
Goldman Sachs, Citigroup (NYSE:C), Barclays, BofA Securities, and J.P. Morgan are collectively serving as joint bookrunning managers for the secondary offering.
