Business World

Monday 26 September 2016

AirAsia has had $1bn takeover offer for leasing unit: report

Published 30/05/2016 | 07:26

-...A picture taken on February 14, 2011 shows AirAsia founder and chief executive officer Tony Fernandes posing at Paris' Orly Airport. The Malaysian businessman Fernandes announced on June 1, 2011 he had bid for West Ham following their recent relegation from the English Premier League. AFP PHOTO / ERIC PIERMONT (Photo credit should read ERIC PIERMONT/AFP/Getty Images)
-...A picture taken on February 14, 2011 shows AirAsia founder and chief executive officer Tony Fernandes posing at Paris' Orly Airport. The Malaysian businessman Fernandes announced on June 1, 2011 he had bid for West Ham following their recent relegation from the English Premier League. AFP PHOTO / ERIC PIERMONT (Photo credit should read ERIC PIERMONT/AFP/Getty Images)

Asia's largest budget airline AirAsia has received a $1bn offer for its aircraft leasing unit, Bloomberg News quoted chief executive Tony Fernandes as saying.

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AirAsia intends to divest the business, Asia Aviation Capital, at some point, Fernandes told Bloomberg on Monday but added that the offer needs to be discussed further with the board.

He was quoted as saying that the business was a "powerful cash generator".

Reuters reported in October that AirAsia has been in talks with lessors, including cash-rich Chinese companies, to sell a stake in its leasing subsidiary.

Chinese companies are seeking to grow aggressively in the leasing industry that provides about 40pc of the planes used by airlines globally.

Following the Reuters report, AirAsia said late last year that it had received approaches from investors to co-invest in the leasing unit.

Reuters

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