Abu Dhabi’s Waha Hedges 12m Aercap Shares, Sells Further 3m

Waha Capital has hedged 12 million shares it owns in AerCap Holdings and has sold a further three million shares in the aircraft leasing firm, providing Waha with $532 million in funding, the Abu Dhabi-listed company said on Thursday.

The announcement follows a similar deal by Waha in September, when it hedged half its stake – 15 million shares – in Aercap.

The new agreement locks in the value of 12 million Aercap shares at a minimum $37.11 each up to a maximum of $52.22, versus minimum and maximum prices of $42.39 and $61.23 respectively in the September deal.

Waha also sold three million Aercap shares, or 10 per cent of its holding, for an undisclosed amount, reducing its overall stake to 12.6 per cent from 14.1 per cent, according to a company statement to Abu Dhabi’s bourse.

Waha said it would use the $532 million of funding provided by the December deal for new investments, to repay debt and general expenses.

AerCap’s shares ended Wednesday at $43.01, down 12.7 per cent from August’s 2014 high.

AerCap Holdings, in which Waha was its largest shareholder, bought American International Group’s aircraft leasing business in a $5.4 billion cash and share deal that was completed in May. This deal reduced Waha’s stake in AerCap to 14.1 per cent from 26.3 per cent.