AirAsia sells Merah Aviation

PETALING JAYA, Dec 24 (Reuters): AirAsia Group Bhd is disposing of its entire stake in Merah Aviation Asset Holding Ltd to AS Air Lease Holdings 5T DAC for US$768 million (RM3.22 billion).

AS Air Lease is indirectly owned by Castlelake LP, a US-based global private investment firm and leader in aircraft ownership and servicing.

AirAsia told Bura Malaysia that its indirect wholly-owned subsidiary Asia Aviation Capital Ltd (AACL) had entered into agreements to sell Merah Aviation, which will comprise 25 existing aircraft to be leased to AirAsia.

Castlelake will also purchase from AACL a total of four new aircraft to be delivered in 2019 for a purchase consideration to be determined at a later date. The aircraft will be leased back to AirAsia and/or its affiliates.

AirAsia said the transaction is subject to its shareholders' approval and other relevant customary closing conditions, and is expected to be completed in the second quarter of 2019.