Annual Report 2019

FINANCIAL STATEMENTS 44. Significant events (i) Sales and leaseback for twenty five (25) aircraft to Castlelake L.P On 24 December 2018, an indirect wholly owned subsidiary of the Company, AAC, entered into a share purchase agreement with AS Air Lease Holdings 5T DAC (“the Purchaser”) and AS Air Lease 8 (Offshore) LP (“the Purchaser Guarantor”), being entities controlled by Castlelake L.P for the proposed disposal of entire equity interest in Merah Aviation Asset Holding Limited, to dispose twenty five (25) aircraft, subject to terms and conditions stipulated in the agreement. On the same date, AACL entered into sale and leaseback agreement with the Purchaser for the sale and leaseback of four (4) new aircraft in 2019 for a purchase consideration to be determined at a later date, depending on the final date of delivery and price escalation adjustments of each aircraft. Subsequently, on 8 March 2019, AAC entered into an amended share purchase agreement with the Purchaser and the Purchaser Guarantor to dispose its entire equity interest in the following entities: (i) Merah Aviation Asset Holding Limited (ii) Merah Aviation Asset Holding Two Limited; (iii) Merah Aviation Asset Holding Three Limited; (iv) Merah Aviation Asset Holding Four Limited; and (v) Merah Aviation Asset Holding Five Limited which will collectively own the twenty five (25) aircraft. On 8 August 2019, AAC completed the disposal of all the above entities and received a total of USD739.4 million (approximates RM3,559.5 million). (ii) Sale and leaseback of 14 existing A320-200 aircraft On 25 July 2019, AAGB’s Board has approved the sale and leaseback of 14 A320ceo aircraft (“14 SLB aircraft”) via Asia Aviation Capital Limited (“AAC”) to Aircastle Limited (“Aircastle”) and Castlelake LP (“Castlelake”). Accordingly, AAGB Group recognised a net gain (after tax) of RM42 million arising from the sale and leaseback transaction. As at 31 December 2019, the 14 aircraft had been disposed to Aircastle and Castlelake, of which, upon completion of the disposal, AAB and/or its affiliate airlines within the Group entered into lease agreements with entities managed by Aircastle and Castlelake to leaseback the same. (iii) Acquisition of additional shares in Touristly Travel Sdn. Bhd. On 4 March 2019, RBV completed the acquisition of 629,130 ordinary shares in aggregate from Netrove Ventures Corporation, Jeffrey Saw Meng Lai and Wong Chin Kit. Following the acquisition, the Company’s indirect shareholdings in AirAsia Com Travel Sdn. Bhd. (formerly known as Touristly Travel Sdn. Bhd.) through RedBeat Ventures increased from 50% to 74.6% resulting in AirAisia Com Travel Sdn. Bhd. becoming an indirect subsidiary of the Company. On 31 May 2019, RBV acquired the remaining shares in AirAsia Com Travel Sdn. Bhd. from Aaron Sarma for a cash consideration of RM1,858,967. Following the acquisition, AirAsia Com Travel Sdn. Bhd. is a wholly-owned subsidiary of RBV. AIRASIA GROUP BERHAD ANNUAL REPORT 2019 333