In a report released today, Nomura Research said if it were to take management's equity valuation of US$1 billion, the US$900 million reflects an enterprise value for 52.75% stake in Asia Aviation, with an estimated net debt of US$706 million. At US$900 million, Nomura Research noted the deal is valued at 14.6 times EV/EBITDA ratio and 15.6 times historical price-earnings, and is 1.9 times its current price-to-book-value, all of which are higher when compared with Asia Aviation peers. “AirAsia is currently sitting in on a backlog delivery of 399 aircraft, [the] second-largest after [India-based] Indigo’s 413 aircraft,” Nomura Research said. Established in September 2014, Asia Aviation — a wholly-owned unit of AirAsia — currently has 74 aircrafts — of which 38 are leased — and 14 engines. The research firm also noted on completion of the stake sale in Asia Aviation, AirAsia’s net gearing could be reduced to 67% from 134% in FY2016.

Source: The Edge Markets March 27, 2017 07:41 UTC