BBAM Limited Partnership’s US$1.18 billion acquisition of aircraft leasing operations of AirAsia Berhad

Milbank, Tweed, Hadley & McCloy advised AirAsia Berhad (AAB), Asia’s largest low-cost airline, on an agreement to sell its aircraft leasing operations to BBAM Limited Partnership (BBAM), one of the world’s largest dedicated managers of investments in commercial jet aircraft.

A wholly owned subsidiary of AAB, Asia Aviation Capital Ltd (AAC) will sell the aircraft leasing operations to BBAM-managed entities for a total disposal consideration of US$1.18 billion, valuing AAB at an enterprise valuation of $2.85 billion – the largest deal of its kind in Asia to date.

The BBAM-managed entities FLY Leasing Limited (FLY), Incline B Aviation Limited Partnership (Incline), and Nomura Babcock and Brown (NBB) will acquire 84 aircraft and 14 engines. The transaction also has a complex forward-looking component involving the sale and potential sale of yet-to-be delivered aircraft to FLY and Incline of just under 100 aircraft.

AAB will receive both cash and non-cash consideration resulting in AAB owning a stake in both FLY and Incline.

The Milbank team was led by Singapore-based partner Paul Ng (picture), who heads Milbank’s aviation and asset finance practice in Asia.

 

Involved fees earner: Paul Ng – Milbank;

Law Firms: Milbank;

Clients: AirAsia;

 

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Author: Michael Patrini