AirAsia sells Asian Aviation Centre of Excellence for RM429.3 million

PETALING JAYA: AirAsia Bhd is selling its entire 50% stake in Asian Aviation Centre of Excellence Sdn Bhd (AACE）for US$100 million (RM429.3 million) to its joint venture (JV) partner CAE International Holding Ltd , as part of its plan to dispose of non-core assets.
The carrier told Bursa Malaysia that it had on August 24 executed a share purchase agreement with CAE for the disposal.
AACE provides training services for pilots, cabin crew, engineers, ramp handlers, guest services and aviation management.
AirAsia is expected to realise a gain on disposal of RM304.8 million in the fourth quarter and RM187.6 million will be recognised at the group consolidated level.
"The net assets and cash balance of the company will increase by RM304.8 million and RM386.4 million respectively immediately after the sale," it noted.
AirAsia said will continue to regularly dispose of non-core investments and dividend most of it out, subject to board approval.
"In the long run, the transaction allows AirAsia to concentrate on its core business by completely outsourcing its training needs to CAE Group and also avoid making further significant capital investments in the JV company," it added.
Proceeds from the disposal will be used for AirAsia's working capital and increase its liquidity.