Guy Hands Plans $6.4B Bid for RBS Aviation

Entrepreneur Guy Hands is planning a 4 billion pound ($6.4 billion) bid for Royal Bank of Scotland’s aircraft financing division: RBS Aviation Capital, Reuters reported, citing a story in the Sunday Times. The report said that Hands wanted to combine RBS Aviation with Awas, a plane-leasing firm owned by his fund Terra Firma.

(Reuters) – Entrepreneur Guy Hands is planning a return to dealmaking with a 4-billion-pound ($6.4 billion) bid for the aircraft financing division of Royal Bank of Scotland, the Sunday Times said.

The newspaper, without citing sources, said Hands wanted to combine RBS Aviation Capital with Awas, a plane leasing firm owned by his investment fund Terra Firma.

If he is successful, the combined firm would become a clear third in the global market for hiring out planes behind General Electric and ILFC, which is part of U.S. insurer AIG, the paper said.

Hands is trying to rebuild his reputation after a failed investment in music group EMI, which passed to the control of Citigroup in February after Terra Firma defaulted on a loan.

Sources with knowledge of the matter told Reuters in June RBS was considering a fresh attempt to sell RBS Aviation Capital after shelving a previous attempt in 2010.

Terra Firma and RBS Aviation Capital were not immediately available for comment. ($1 = 0.622 British Pounds) (Reporting by Mark Potter; Editing by Louise Heavens)