CIT Group Inc. said Thursday it is selling its commercial aircraft-leasing business to a subsidiary of China's Bohai Capital Holding Co. for $10 billion.
Shares of CIT rose almost 8 percent in extended trading after the sale was announced.
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The deal is expected to close by the end of the first quarter of 2017 if it wins regulatory approval in the U.S. and China.
New York-based CIT, a financial-services holding company, said the sale to Bohai's Avolon Holdings would simplify its business and improve its balance sheet.
The company said it got a "non-objection" from the Federal Reserve Bank of New York for a capital plan that is subject to closing the sale. The plan authorizes CIT to return nearly $3 billion in stock to shareholders from proceeds of the sale, it said.
CIT's stock jumped $2.76 to $39.16 in extended trading after the announcement.
Leasing companies cater to airlines that prefer to lease planes rather than buy them. Many airlines operate a mix of owned and leased aircraft.