Aug. 26 (Bloomberg) -- BBA Aviation Plc, the world’s biggest provider of bases for business jets, and aircraft leasing company Dubai Aerospace Enterprise Ltd. said they are discussing a combination of parts of their businesses.
Talks concern “certain parts of its business,” DAE said in a statement today, adding there are “no other details” on the matter at this time. BBA said there can be no assurance of a transaction. The company, which is based and listed in London, is valued at about 1.48 billion pounds ($2.3 billion).
DAE, which was set up in 2006 with the aim of becoming one of the world’s biggest aircraft lessors, dropped most of its aircraft purchases since its finances weakened in the global recession. The company ordered 100 planes from Airbus SAS and Boeing Co. at the 2007 Dubai air show, only to scale back its ambitions and cancel 45 Airbus planes valued at $5.8 billion.
The Sunday Times reported yesterday that BBA is in talks to purchase its U.S. rival Standard Aero and that DAE, which owns the Arizona-based engine repair and maintenance business, may take a stake in the enlarged business. Such a transaction would value the combined business at 2.7 billion pounds and Standard Aero at 1.3 billion pounds, the newspaper said.
BBA Aviation rose as much as 5.3 pence, or 1.7 percent,. to 309.5 pence in London on Aug. 23. Markets in London are closed today for a holiday. The stock has advanced 38 percent in 2013.
To contact the reporter on this story: Deena Kamel Yousef in Dubai at firstname.lastname@example.org
To contact the editor responsible for this story: Benedikt Kammel at email@example.com