NEW YORK (TheStreet) -- Shares of CIT Group (CIT - Get Report) were advancing 5.77% to $38.50 in after-hours trading on Thursday after the Livingston, NJ-based commercial lender agreed to sell its commercial aircraft leasing business for $10 billion to Avolon, which is a subsidiary of China's Bohai Capital.
After the deal closes, CIT plans to return $2.98 billion to shareholders from the proceeds of the sale and pay $64 million of dividends each year, according to a company statement.
The transaction is expected to close in the 2017 first quarter.
"We are making meaningful progress on our strategy to create a leading national middle-market bank," CEO Ellen Alemany said in a statement.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
CIT's strengths such as its robust revenue growth, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: CIT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.