AirAsia sells leasing unit at a good price

After putting up its aircraft leasing business for sale for nearly two years, the Malaysian budget carrier finally struck a deal with BBAM for $1.18 billion.

AirAsia, Asia’s biggest low-cost airline, completed the biggest divestment in its corporate history after agreeing to sell its aircraft leasing operations to US aircraft lessor BBAM for RM$4.6 billion $1.18 billion on Thursday.

News of Asia Aviation Capital's sale, the culmination of a near-two year process, was well received by the market since the price tag is higher than the $1 billion bid AirAsia had received in May 2016. AirAsia's share price rebounded 5% on Thursday after dipping as much as 6.7% on Wednesday on a disappointing set of full-year results.

The deal will see BBAM taking over AirAsia’s...

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