AirAsia sells AAE stake

SEPANG AirAsia announced, Tuesday, the execution of a Share Purchase Agreement with Expedia Inc, Expedia Southeast Asia Pte Ltd and AirAsia Exp Pte Ltd a wholly-owned subsidiary of AirAsia, to divest a 25% stake in AAE Travel Pte Ltd, the joint venture between Expedia and AirAsia.
Expedia will buy the stake for USD86.3 million (MYR306,187,500) a move that will increase Expedia’s equity in the joint venture to 75%.
In connection with this transaction, AirAsia has also amended and concurrently executed certain additional agreements with Expedia.
inside no 7“We started the JV with Expedia back in 2011 and together, we’ve built a fantastic business. The vision of marrying Expedia, a globally recognised and highly regarded travel agency, with the AirAsia group network has yielded a significant return in just over three years.”
“We remain committed as partners…Expedia continues to develop in this region, and this agreement will simultaneously allow for the AirAsia group to further develop and diversify its distribution network.”
“Over the years, AirAsia has also invested in partnerships with Tune Insurance, Asian Aviation Centre of Excellence with CAE, Think Big Digital with Aimia and Tune Money, and we continue to look for additional partnership opportunities,” said Tony Fernandes, AirAsia Group CEO.
The transaction is expected to close in the first half of 2015.

sourced:ttrweekly.com