Tokyo Century Corp. and an ANA Holdings subsidiary plan to take a majority stake in GA Telesis, the aftermarket services and engine leasing company. The stakeholder change is prompted by Global Principal Finance Co., a wholly owned subsidiary of Bank of America and investor in GA Telesis since 2007, which wanted to “harvest their investment” in a healthy market, says Abdol Moabery, GA Telesis’ president and CEO.
When Global Principal Finance decreased its share from 49% to 39.2% in 2012, Tokyo Century picked up the divested share—and now it plans to increase its stake to 49.2%. In addition, All Nippon Trading Co. (ANATC) will acquire a 10% interest in GA Telesis.
Tokyo Century and ANATC expect to close the transactions by the end of October.
ANATC, a multinational service and solutions provider, has done business with GA Telesis for 15 years. “We purchased many airplanes and spare engines from their fleet. We also have had a healthy parts trading relationship with them,” says Moabery.
The companies did not disclose their investments in dollars or yen—just percentages.
In a separate, but related agreement, Tokyo Century, ANATC and GA Gelesis agreed in principle to form a commercial aviation engine leasing joint venture focusing on current technology jet engines. The JV will be funded in the fourth quarter of this year and be managed by GA Telesis, says Moabery.
In August 2017, GA Telesis and Tokyo Century announced the launch of a new-technology engine leasing initiative that would complete $1 billion of engine transactions over two years. The engines targeted for that initiative include the General Electric GEnx, Rolls-Royce Trent 1000 and XWB, Pratt & Whitney geared turbofan and CFM International LEAP engines.