Dubai Aerospace Enterprise (DAE) has come to an agreement to procure Macquarie AirFinance Ltd. for an enterprise valuation of approximately $7 billion, enabling it to augment its fleet to over 1,000 planes and additionally solidify its presence in the aviation finance sector.
This transaction will stand as one of the most substantial in the worldwide aviation leasing landscape recently and will considerably reinforce DAE’s standing amongst the foremost leasing entities. The firm will fund the acquisition via a combination of debt and equity instruments, as per the official release.
Following the consummation of the transaction, DAE’s aircraft portfolio will more than double from its level at the close of 2024, the company declared. This enlargement will permit DAE to elevate the proportion of extended agreements with airlines and broaden its customer base across different geographic regions.
Dubai Aerospace Enterprise (DAE) is a prominent aircraft leasing business in the Middle East, with its headquarters situated in Dubai. The organization is involved in the leasing, management, and funding of commercial airplanes, alongside aircraft maintenance via its DAE Engineering arm. DAE's clientele includes numerous airlines globally, encompassing carriers in Europe, Asia, and the Middle East. The enterprise is vigorously expanding its holdings by acquiring contemporary generation aircraft, placing emphasis on the rebound of the global aviation arena post-pandemic.
Macquarie AirFinance represents a global aircraft leasing venture, previously affiliated with the Australian financial conglomerate Macquarie Group. The entity possesses and manages a selection of both narrow-body and wide-body airplanes, leasing these to airlines across the globe. Macquarie AirFinance is recognized for its structured methodology toward asset administration and a remarkably diverse customer roster.
Macquarie Group functions as a significant Australian investment bank and asset management firm boasting strong footholds within infrastructure, energy, and transport assets. The divestiture of the aviation undertaking aligns with the group's asset redeployment plan and dedication to capital-intensive infrastructure ventures.
Analysts have noted that the agreement illustrates further consolidation within the aircraft leasing domain, wherein key stakeholders are aiming to scale up amidst escalating demand for air travel coupled with restricted supplies of novel aircraft from manufacturers. The culmination of the deal is contingent upon typical regulatory clearances and might be conditional on financing terms.
Source: Bloomberg