Friday 29 Mar 2024
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KUALA LUMPUR (Aug 29): AirAsia Bhd’s board of directors has approved the divestment of Asia Aviation Capital Ltd (AAC), the low cost carrier’s wholly-owned aircraft leasing business.

In a filing with Bursa Malaysia today, AirAsia said the board has agreed to “carry out a sale process for the purpose of divesting all or a substantial portion of its equity interest in AAC, or its business or assets.”

The airline said it has appointed RHB Investment Bank, Credit Suisse (Singapore) Ltd and BNP Paribas (acting through its Singapore branch) and BNP Paribas Capital (M) Sdn Bhd, as joint advisers for the potential divestment.

RHB has also been appointed as the sole principal adviser for the implementation of the proposal, arising from the potential divestment.

AAC carries out the aircraft leasing business within the AirAsia group and with third party airlines.

Moving forward, AirAsia said AAC’s lessor offerings would include purchase of aircraft from original equipment manufacturers, airlines or lessors and lease them to customers; aircraft portfolio trading to enhance asset diversification strategy; and expansion of sale and leaseback portfolio by access to immediate delivery slots.

Additionally, AirAsia said AAC’s offered ancillary services include maintenance programme, spare engine leasing, as well as advisory.

AirAsia’s share price rose six sen or 2.05% to RM2.99 today, giving it a market capitalisation of RM8.32 billion. The counter has more than doubled its price this year.

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