Waha Capital PJSC (WAHA) rose the most since 2004 after a rally in the shares of AerCap Holdings NV (AER:US), which is part-owned by the Abu Dhabi-based leasing company.
Waha Capital surged 15 percent to 1.85 fils at 1:03 p.m. in Abu Dhabi, valuing the company at 3.5 billion dirhams ($956 million). AerCap, the airport leasing company 26.3 percent owned by Waha Capital, soared 33 percent in New York yesterday after it agreed to buy International Lease Finance Corp. from American International Group Inc. (AIG:US) for $5 billion.
The leasing industry accounts for almost 40 percent of the $100 billion spent globally on new planes each year. AerCap will more than triple its fleet of airliners to almost 1,400, about 300 less than GE. Waha Capital said it’s supportive of the transaction as it will be value enhancing.
“The purchase will make AerCap one of the largest leasing companies, alongside General Electric (GE:US),” Fadi Al Said, head of investments at ING Investment Management Middle East Ltd., said by phone today. “For Waha Capital it means they will have a chunk of accounting revenues that is bigger.”
The deal will cut Waha Capital’s stake in AerCap to about 14 percent, the Abu Dhabi-based company said. Investors are betting that even with Waha’s stake in AerCap declining, the value could increase, according to Said.
“AerCap’s gains are a big, big move in terms of Waha’s underlying investment,” he said.
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