Itochu Invests in Aviation Capital Group via SKY-U Stake Purchase

TOKYO, Aug 03 (Pulse News Wire) – Itochu Corporation (8001.T) resolved at its August 3 board meeting to acquire a stake in TC Skyward Aviation U.S., Inc. (SKY-U) through which it will participate in Aviation Capital Group LLC (ACG).

The move aims to support ACG's long-term growth and expand joint ventures with Tokyo Century Co., Ltd. The transaction involves acquiring SKY-U shares representing 50.0% of outstanding shares, valued at $1.946 billion. Post-acquisition, Itochu’s shareholding ratio in SKY-U will be 50% while Tokyo Century's will be 50%. Additionally, Itochu plans to subscribe to convertible bonds issued by Tokyo Century to strengthen its capital base and support the co-management of ACG.

Separately, Itochu appointed Nomura Securities as independent external financial advisor for the bond subscription process. The bonds carry a coupon rate based on the yield of two-business-day prior one-year government bonds plus 1.800% for fiscal years ending after April 1, 2032. Tokyo Century can redeem the bonds five-and-a-half years post issuance, subject to Itochu's agreement. The impact of this investment on Itochu's consolidated earnings is reflected in its forecast for the fiscal year ending March 2027.