Malaysian budget airline AirAsia Group Bhd. agreed to sell 25 planes to global private investment firm Castlelake LP in a deal valued at US$768.0 million.

Under the deal terms, AirAsia unit Asia Aviation Capital Ltd. will sell its stake in Merah Aviation Asset Holding Ltd., which holds the aircraft portfolio, to Castlelake entity AS Air Lease Holdings 5T DAC.

Castlelake will also purchase four new planes from Asia Aviation Capital, to be delivered in 2019. All aircraft will be leased back to AirAsia and/or its affiliates.

The deal is expected to close in the 2019 second quarter, subject to shareholder approval and other relevant customary closing conditions.

BNP Paribas is the financial adviser to AirAsia, while Stephenson Harwood LLP and Tay & Partners are the legal counsels to the company. Castlelake retained Vedder Price PC as legal counsel.