Friday 29 Mar 2024
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KUALA LUMPUR (Aug 25): Budget airline carrier AirAsia Bhd said it is selling its entire 50% stake in Asian Aviation Centre of Excellence (AACE) for US$100 million (RM429.3 million) to its joint venture (JV) partner, CAE International Holding Ltd.

"In the long run, the transaction allows AirAsia to concentrate on its core business by completely outsourcing its training needs to CAE Group and also avoid making further significant capital investments in the JV company," the airline said in a bourse filing today.

The group executed a share purchase deal yesterday with CAE for the disposal.

The sale is part of its plan to "regularly dispose of non-core investments and dividend most of it out", it said.

The transaction will see it realise a gain on disposal of RM304.8 million in the fourth quarter of the year.

"The net assets and cash balance of the company shall increase by RM304.8 million and RM386.4 million respectively immediately after the sale.

"A total gain of RM187.6 million will be recognised at group consolidated level," it added.

The cash received as purchase consideration will form part of AirAsia's working capital and increase its liquidity, it said.

The JV was entered into by the two parties in June 2011 in order to providing training services for pilots, cabin crew, engineers, ramp handlers, guest services and aviation management at the academy.

The transaction does not require its shareholders' approval, but will need the green light of the Department of Civil Aviation, which AirAsia and CAE will jointly procure.

At 2.31pm, AirAsia shares rose 4 sen at RM3.32 with some 3.5 million shares exchanging hands.

 

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