Cheung Kong agrees to buy stakes worth $2b in aircraft for leasing

Cheung Kong Holdings, owned by Asia's richest man Li Ka-shing, said it had agreed to buy stakes worth $2.02 billion in about 60 aircraft as part of the property firm's push into airplane leasing, Reuters reported late Tuesday (US time).

Cheung Kong agreed to wholly buy 45 aircraft as well as a 60 percent interest in another 15 aircraft from various sellers including GE Capital Aviation Services, unit of US conglomerate General Electric Co, and Bank of China's aviation leasing unit, the company said in a filing late Tuesday.

Cheung Kong also agreed to form a joint venture with the aircraft leasing unit of Japan's Mitsubishi Corp, which will be controlled by the Hong Kong company.

The transactions are in line with the company's strategy to further develop its aircraft ownership and leasing business, the company said.

Reuters had previously reported that Li was aiming to buy his way into the global aircraft leasing business as his flagship investment firm holds talks with lessors.

Cheung Kong is in talks to buy aircraft being sold by private equity firm Terra Firma-owned lessor AWAS Aviation Capital, in a deal worth about $5 billion.

Li also controls conglomerate Hutchison Whampoa.