International law firm Milbank, Tweed, Hadley & McCloy LLP, represented Sumitomo Mitsui Banking Corporation (SMBC) in their acquisition of RBS Aviation Capital, creating the world’s fourth largest commercial jet aircraft leasing and finance company, for US$7.3 billion from The Royal Bank of Scotland plc. This is the largest disposal by RBS since the government bailout in 2008.
As a result of the sale, the consortium comprising SMBC, SMBC’s parent Sumitomo Mitsui Financial Group and Sumitomo Corporation will acquire RBS Aviation Capital for an approximate consideration of US$7.3 billion (£4.7 billion), subject to certain closing adjustments. RBS Aviation Capital currently owns 206 aircraft and has commitments for another 87 aircraft by 2015. The future order commitments of $3.7 billion (£2.4 billion) will transfer with the business. The sale is expected to be completed before the end of Q3 2012.
The Milbank transaction team was led by New York based Corporate partner Roland Hlawaty, with consulting partner Elliot Gewirtz (Transportation, NY office) and partner Stuart Harray (Corporate, London office), along with Tax partners Dale Ponikvar (NY) and Russell Jacobs (London), IT/Outsourcing partner Nicholas Smith (New York), Anti-trust partner Alexander Rinne (Munich office) and Financial Institutions Regulatory partner Win Brown (Washington DC), with associates Andrew Everett II and Brian Kelly (Corporate, NY), James Pascale (Transportation, NY), Mark Withey (Corporate, London), Caroline Cowie (Transportation, London), Matthew Mortimer (Tax, London) and Tatjana Mühlbach (Anti-trust, Munich).
The transaction reinforces Milbank’s reputation for seamless collaboration across both global practice areas and its international offices.
“We are pleased to negotiate this successful bid on behalf of SMBC which will expand our client’s portfolio of aircraft leasing services and products,” said Roland Hlawaty. He added, “This transaction highlights Milbank’s position as a leading firm for large scale cross-border M&A transactions.”
