AirAsia shares down on news of special dividend
In this article (4)
AirAsia Malaysia share price fell 1.52% at mid day after it plans to use the bulk of the cash proceeds from the sale of its aircraft leasing operations Asia Aviation Capital Ltd to pay out a special dividend to shareholders and settle bank borrowings to improve its financial leverage.
At 12pm today, AAB’s share price stood at RM4.53 with 13.49 million shares changing hands.
AAB will sell Asia Aviation Capital Ltd for US$1.18 billion to BBAM Limited Partnership (BBAM) managed entities.
Under the terms of the agreements, FLY Leasing Limited (FLY), Incline B Aviation Limited Partnership (Incline), Nomura Babcock and Brown (NBB) will acquire a portfolio of 84 aircraft and 14 engines of which 79 Aircraft and 14 engines will be leased back to AirAsia and its affiliates.
FLY and Incline have also entered into agreements to acquire 48 aircraft to be delivered to AAB and an option to acquire a further 50 aircraft to be delivered.
Questions & Answers
Q.How many aircraft will AirAsia continue to operate after the sale?
How many aircraft will AirAsia continue to operate after the sale?
Following the sale, AirAsia and its affiliates will lease back 79 aircraft and 14 engines from the portfolio sold. Also, FLY and Incline have agreed to acquire 48 aircraft for delivery to AAB, with an option for 50 more.
Q.Who are the entities acquiring the aircraft from AirAsia?
Who are the entities acquiring the aircraft from AirAsia?
BBAM Limited Partnership managed entities are acquiring Asia Aviation Capital Ltd. Specifically, FLY Leasing Limited, Incline B Aviation Limited Partnership, and Nomura Babcock and Brown will acquire the portfolio of aircraft and engines.