AirAsia transfers another 15 aircraft to BBAM, nets US$201.5m in gross proceeds

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KUALA LUMPUR (Sept 3): AirAsia Group Bhd has received US$201.5 million in gross proceeds from the transfer of 15 aircraft to entities managed by BBAM Ltd Partnership, as part of its divestment plan for the aircraft-leasing unit currently managed by wholly-owned subsidiary Asia Aviation Capital Ltd.

AirAsia said the proceeds include a cash consideration of US$151.5 million cash and 3.33 million FLY Leasing Ltd equity issued at US$15 per FLY depository share to AirAsia in accordance with the FLY subscription agreement.

To date, AirAsia has transferred 54 out of a total 84 aircraft up for transfer, for which the group has already received total gross proceeds of US$703.1 million.

"AirAsia is still on track to complete the disposal of the remaining 30 aircraft and 14 aircraft engines under the Incline B and FLY sale and purchase agreements, respectively, as planned," it added in a filing with Bursa Malaysia today.

In March, AirAsia announced the deal with San Francisco-based BBAM, one of the world's largest managers of investments in leased commercial jets, whereby it would sell its aircraft-leasing operations to BBAM-managed entities, including Herondell Ltd, for US$1.18 billion, valuing the business at an enterprise valuation of US$2.85 billion.

AirAsia is expected to recognise a gain of RM967.1 million from the disposal.

At 3.13pm, its share price was down six sen or 1.74% at RM3.38 with 5.03 million shares done for a market capitalisation of RM11.4 billion.