Mitsubishi UFJ Lease to Purchase Jackson Square Aviation
Mitsubishi UFJ Lease & Finance Co. (8593) agreed to buy Oaktree Capital Group LLC (OAK)’s Jackson Square Aviation LCC for 100 billion yen ($1.3 billion) to add about 70 planes to its commercial-aircraft fleet.
The purchase will be completed in December, Tokyo-based Mitsubishi UFJ Lease said in a statement today. The lessor, an affiliate of Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest publicly traded bank, will do the deal by buying Jackson Square’s parent JSA International Holdings LP.
Japanese banks are targeting plane-leasing and expansion overseas as a shrinking population saps demand at home and because a stronger yen has made foreign assets cheaper to buy. Sumitomo Mitsui Financial Group Inc. (8316) completed the $1.2 billion purchase of Royal Bank of Scotland Group Plc’s plane-leasing unit in June.
“Expansion prospects in Japan are limited,” said Shiro Yoshioka, a Tokyo-based analyst at Japaninvest Group Plc. “The stronger yen is also helping boost purchasing power.”
Jackson Square’s 65 planes are in service with carriers including Air France-KLM Group (AF), Emirates and Virgin America Inc., according to aviation-data provider Ascend. The company’s fleet, which is predominately narrow-body Boeing Co. and Airbus SAS planes, is worth about $2.8 billion, it said.