KUALA LUMPUR (Reuters) - Low-cost airline AirAsia Group Bhd (AIRA.KL) sold its remaining 25 percent stake in its joint venture unit with travel platform Expedia Group Inc (EXPE.O) for $60 million, the companies said on Tuesday.
AirAsia Group and Expedia formed the joint venture AAE Travel Pte Ltd in 2011, in which Expedia held a 75 percent stake since 2015.
“The cash consideration is $60 million, net of AirAsia’s concurrent purchase of AirAsiaGo.com domain names and related assets from AAE Travel Pte Ltd,” the companies said in a joint statement.
The sale was the divestment of the airline’s last non-core investments from previous joint ventures, AirAsia Group CEO Tony Fernandes said in the statement.
Fernandes said the sale proceeds will be used to develop the group’s digital and logistics products such as BigPay, Travel 360, Redbox Logistics and Ourshop.
“We look forward to continuing to work (with Expedia) very closely in the future, particularly regarding regional and global distribution of AirAsia flights,” he said.
Reporting by Liz Lee; Editing by Gopakumar Warrier