Li Ka-shing Plans to Buy Aircraft From Irish Firm: Dow Jones Cheung Kong (Holdings) Ltd. is seeking to acquire aircraft assets from Dublin-based jet lessor AWAS, marking what would be the Hong Kong developers first major foray into the aviation industry. Cheung Kong--controlled by Li Ka-shing, one of Asias wealthiest men--said Monday it had submitted a preliminary nonbinding proposal on the possible acquisition of aircraft from the Irish company. The developer said the possible deal was at a very preliminary stage and gave no assurances that a definitive agreement would be reached. It didnt provide further details about the size and value of the deal. Cheung Kongs decision to extend its reach into the aviation business comes as heavy competition has pushed many premium carriers to cut costs and refresh their fleets with planes that use less fuel. A proliferation of budget carriers in the region and a move last year by China to lift a six-year ban on setting up independent airlines helped to increase demand for new aircraft. The move would also be the Li familys second major attempt to invest in the aviation industry. In late 2003, Victor Li, the eldest son of Li Ka-shing and a Canadian citizen, tried to buy a 31% stake in Air Canada for 650 million Canadian dollars (US$595.1 million). That attempt failed as he encountered problems with the airlines labor unions. Cheung Kong said Monday it has been exploring new investment opportunities to generate additional stable revenue streams to drive forward its growth momentum, and that the proposed acquisition was one of those opportunities.
Posted on: Mon, 04 Aug 2014 05:50:42 +0000
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