Bravia Capital, a well-known Hong-Kong based advisory and investment company, has made a number of smart acquisitions over the years, and the $3 billion acquisition of Allco Aviation almost a decade ago is no exception, according to Bharat Bhise, who leads Bravia Capital.
The acquisition of Allco, however, was far from easy. In fact, it was among the most complex transactions involving an aircraft leasing company ever. It took Bravia Capital about seven months to finally acquire Allco, as many Allco aircraft lenders opposed Bravia Capital’s bid.
Many of the biggest aircraft investors and lenders at the time were hoping to appoint another manager to be involved in the process. But a judge in November of 2008 ruled that the participation of every lender – not just the majority of them on the transaction – was necessary for the appointment of a brand-new manager. Because Allco Finance had positions in an estimated 50% of the airplanes involved in the transaction, the deal was able to be completed based on the court decision.
All in all, the transaction ended up being a positive one for all parties. Bravia Capital, which won the bid back in May of 2009, chose to rename Allco, so it is now known as Hong Kong Aviation.
Although the sales process was a challenging one, Bhise at the time said that he was not surprised regarding the sale’s eventual close, as he had always felt confident that Bravia Capital’s bid would be a successful one. In addition, all employees with Allco kept their jobs as part of the transaction, which was excellent news for them.
Bravia Capital stands out today due to its track record of success in completing profitable acquisitions – and ones that benefit all parties involved. It is expected to continue to thrive in logistics and transportation, as well as other growth industries.