DAE arranges funds for $1.8bn US buy
Dubai, June 11, 2007
Dubai Aerospace Enterprise (DAE) said it has arranged funding for its planned $1.8 billion takeover of two aircraft-servicing companies in the US.
DAE will buy Standard Aero Holdings Inc and Piedmont/Hawthorne Holdings Inc from private equity firm Carlyle Group for $1.8 billion, according to a regulatory filing on April 2.
The deal still needs US government approval.
"The funding for that transaction is complete," Michael Killian, DAE's treasurer told Reuters in Dubai. "It's not all equity." He declined to give details.
Killian denied a report in London-based Middle East Economic Digest, citing him, that DAE was considering selling Islamic bonds before the end of the year to finance expansion.
"I was just making general comments at a conference about how we might finance growth, through debt, traditional bonds and sukuk (Islamic bonds)," Killian said. "We have no specific plans." DAE has appointed no bank to arrange any debt, he said.
DAE has said it plans to invest $15 billion in the aviation business, including leasing of aircraft and airport development. Most of the investment will be by the end of this year, according to the company's Web site. - Reuters