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UPDATE 1-Abu Dhabi's Waha buys 50 pct stake in Aerventure

Published 06/21/2009, 09:50 AM
Updated 06/21/2009, 09:56 AM
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*Waha to invest $135 million for 50 percent stake

*Parent Aercap sees regional growth from 2010 (Adds AerCap CEO comment, details, background)

ABU DHABI, June 21 (Reuters) - Abu Dhabi's Waha Capital said on Sunday it would invest about $135 million to buy a 50 percent stake in AerVenture, a unit of Dutch aircraft leasing firm AerCap.

"We are convinced our investments in AerVenture will significantly benefit stakeholders in both companies," Waha Capital chief executive Salem Rashid al-Noaimi said in a statement.

"The parties have committed to a combined total equity investment in AerVenture of $270 million. We will be placing our equity of $135 million using our facilities."

AerVenture was set up in 2006 as an equallly-owned joint venture between AerCap and Kuwait's Load Air. The Kuwaiti partner pulled out recently due to difficulties in the Kuwait capital market, said Klaus Heinemann, CEO of AerCap.

"It is important for us to have an anchor in the Middle East region and we initiated discussions with Waha Capital," he said, adding that only 5 percent of their AerCap's business is in the Middle East, a region that is growing strong and very fast.

AerVenture's total assets are valued at $2.4 billion. The firm has 22 aircraft and is expecting deliveries of 32 more by early 2011, said Heinemann, adding that all the aircraft are Airbus A320s.

AerCap and AerVenture are capable of weathering the downturn in the aviation sector as recovery begins, he said.

"There is a clear sign of improvement and from 2010, the market will resume some form of growth," he said. "Even our financing is in place for the 32 aircraft yet to be delivered." (Reporting by Stanley Carvalho; Editing by Rupert Winchester)

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