The management of aircraft financing company Pembroke Group and Mr Dermot Desmond's IIU investment company have sold their combined 50 per cent of Pembroke to the US financial group GATX Capital Corporation.

The price has not been disclosed but industry sources said it was in the region of $65 million(€70.2 million). If this is the case, it will mean another profit for IIU and will make millionaires of the Pembroke management team headed by Mr Shane Cooke and Mr Brian Goulding.

Pembroke was formed in 1993 by former GPA executives. IIU bought into the company in 1995, paying $15 million for a 50 per cent stake. That 50 per cent stake fell to 30 per cent in 1998 when Pembroke merged its aircraft financing operations with Rolls Royce on a 50-50 basis.

If the $65 million valuation on the 50 per cent sold to GATX is correct, it will mean that IIU has more than doubled its initial investment in Pembroke to $39 million while the management team and some outside private investors will share $26 million.

Following the sale, Pembroke - which operates a portfolio of 145 aircraft - will be equally owned by Rolls Royce and GATX.

The sale of the 50 per cent of Pembroke is the second major transaction involving an Irish aircraft financing company. Last year, Aerfi - an offshoot of GPA - was sold to the German group Debis Airfinance with Dr Tony Ryan and his family being some of the main beneficiaries.

Pembroke managing director Mr Shane Cooke, who will remain in place at the head of Pembroke, said having GATX as a 50 per cent shareholder with Rolls Royce would enhance the group's ability to provide products and services to its customers and also to expand the business.

GTAX chief executive, Mr Jesse Crews said: "This acquisition extends our successful strategic relationship with Rolls Royce and furthers our longterm goal of expanding the size and scope of our aircraft leasing and management activities."