Standard Chartered mulls sale of £3bn aviation arm days after First Abu Dhabi Bank drops takeover bid
Standard Chartered is considering selling its £3bn aviation finance business, the bank said today.
Standard Chartered’s aviation business, which is based in Ireland, accounts for around two per cent of its total income.
The business owns and manages over 120 aircraft, leasing them to over 30 of airlines around the world, according to Airfinance Journal’s 2022 rankings, its fleet was worth $3.7bn (£3.0bn).
Talking about the sale of the business, Simon Cooper, chief executive officer of corporate, commercial and institutional banking, said: “We believe that a new owner can drive the next phase of growth whilst we continue to focus on our commitment to improve shareholder returns and delivering on our 2024 targets.”
Bill Winters, CEO, said the bank is aiming “to simplify our business and sharpen our focus on where we are most differentiated”.
The announcement comes just days after First Abu Dhabi Bank pulled out of a potential takeover bid for Standard Chartered.
Shares in the London-based lender climbed 20 per cent on the day takeover rumours were confirmed, but most of those gains were wiped out after it said it would not go ahead with the deal.
Although it is headquartered in London, Standard Chartered operates in 59 markets across the world, with a focus on Asia. Its sprawling footprint makes it both an attractive target, due to its access to fast growing markets, but would add a complexity to any potential deal.