AirAsia share price up marginally after selling stake in Expedia JV
In this article (5)
AirAsia Group Bhd’s (AAG) share price rose 0.90% this morning after it divested its remaining 25% stake in its joint venture (JV) company, AAE Travel Pte Ltd for US$60 million (RM240 million).
The airline sold its remaining stake to the 75% stakeholder in the company Expedia Inc’s Expedia Southeast Asia Pte Ltd — in a bid to monetise its investment and utilise the proceeds as working capital.
At 10.41am, AAG was trading at RM3.38 with 2.18 million shares changing hands.
AirAsia divested the other 25% interest it had in March 10, 2015.
The group announced in a bourse filing yesterday that it has executed a share purchase agreement for the disposal and the cash purchase consideration is net of AirAsia’s concurrent purchase of AirAsiaGo.com domain names and related assets from AAE Travel Pte Ltd by Travel 360 Sdn Bhd.
AirAsiaGo.com, which offers a full suite of travel products including AirAsia flight and hotel packages featuring Expedia Group lodging content, will continue to be powered by Expedia Group.
Questions & Answers
Q.What was AirAsia's total stake in AAE Travel before this recent sale?
What was AirAsia's total stake in AAE Travel before this recent sale?
AirAsia originally held a 50% interest in AAE Travel. They divested 25% in March 2015 and have now sold their remaining 25% stake, completing their divestment from the joint venture.
Q.Who bought AirAsia's remaining stake in the joint venture?
Who bought AirAsia's remaining stake in the joint venture?
Expedia Inc's Expedia Southeast Asia Pte Ltd bought AirAsia's remaining 25% stake. Expedia Southeast Asia was already the 75% stakeholder in the joint venture company, AAE Travel Pte Ltd.
Q.What is the purpose of selling this stake for AirAsia?
What is the purpose of selling this stake for AirAsia?
AirAsia sold its remaining stake to monetise its investment and use the proceeds as working capital. This strategic move aims to improve the company's financial liquidity and operational funding.
Q.Will AirAsiaGo.com continue to function after this transaction?
Will AirAsiaGo.com continue to function after this transaction?
Yes, AirAsiaGo.com will continue to operate and be powered by Expedia Group. The platform, which offers flight and hotel packages, will still feature Expedia Group's lodging content for customers.
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