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AirAsia clears the air on privatization
Last week, an article from a news wire stated that the major shareholders of AirAsia â Tan Sri Tony Fernandes (left in inset filepic) and his long-time business partner Datuk Kamarudin Meranun (right) â had gone to Singapore to meet bankers when the share price was at its low with the view of taking the airline private in a management-led buyout
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Last week, an article from a news wire stated that the major shareholders of AirAsia â Tan Sri Tony Fernandes (left in inset filepic) and his long-time business partner Datuk Kamarudin Meranun (right) â had gone to Singapore to meet bankers when the share price was at its low with the view of taking the airline private in a management-led buyout. Fernandes is group chief executive officer while Kamarudin is chairman of AirAsia and they hold 19% in AirAsia. (The Star/ANN) (left in inset filepic) and his long-time business partner Datuk Kamarudin Meranun (right) â had gone to Singapore to meet bankers when the share price was at its low with the view of taking the airline private in a management-led buyout. Fernandes is group chief executive officer while Kamarudin is chairman of AirAsia and they hold 19% in AirAsia. (The Star/ANN)
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span class="inline inline-center">Last week, an article from a news wire stated that the major shareholders of AirAsia ' Tan Sri Tony Fernandes (left in inset filepic) and his long-time business partner Datuk Kamarudin Meranun (right) ' had gone to Singapore to meet bankers when the share price was at its low with the view of taking the airline private in a management-led buyout. Fernandes is group chief executive officer while Kamarudin is chairman of AirAsia and they hold 19% in AirAsia. (The Star/ANN)
After weeks of speculation, AirAsia Bhd has finally cleared the air on the state of its privatization.
The low-cost carrier said its major shareholders were looking at 'strategic options' on investments but had not reached any decision at this stage yet.
'As is normally expected with other investors, the major shareholders of the company evaluate all strategic options with regard to its various investments from time to time and the major shareholders get approached by several parties from time to time with various proposals, including to explore the possibility of increasing their stake in the company,' said AirAsia.
'However, the major shareholders have not reached any decision at this stage as there are many factors to carefully consider and this may or may not lead to any transaction,' the budget carrier told Bursa Malaysia.
Shares in AirAsia hit a low of 78 sen in late August after it came under attack from a Hong Kong-based equities research firm, GMT Research, that questioned AirAsia's concerns about the airline's financial accounts and claimed that its business model was not sustainable. The other issue bogging down the airline was the US dollar-denominated loans that grew due to the weakening ringgit.
But the shares have picked up steadily over the one last month on speculation that the company could be taken private due to its cheap valuations. Yesterday, AirAsia closed at RM1.48 on a volume of 23.75 million shares.
Last week, an article from a news wire stated that the major shareholders of AirAsia ' Tan Sri Tony Fernandes and his long-time business partner Datuk Kamarudin Meranun ' had gone to Singapore to meet bankers when the share price was at its low with the view of taking the airline private in a management-led buyout.
Fernandes is group chief executive officer while Kamarudin is chairman of AirAsia and they hold 19% in AirAsia.
Maybank Investment Bank has said in a report that the cost of privatizing AirAsia is estimated at RM2.84bil for the remaining 81% stake.
The board of AirAsia said yesterday that it had not received any offers to take the company private and would make the appropriate announcement should there be any further official development on this matter.
The article by a foreign news wire also stated that AirAsia has been in talks with lessors, which include cash-rich Chinese companies, to sell a stake in its leasing subsidiary.
On this matter, AirAsia said it had over the years received inquiries from aircraft leasing companies for a stake in its wholly owned subsidiary Asia Aviation Capital Ltd (AACL).
'The management of AirAsia has over the years been receiving inquiries from aircraft leasing companies and investors from all over the world. These are parties who are interested in acquiring aircraft to expand their existing portfolio,
'And since the incorporation of AACL, we have been approached by investors who are keen on co-investing in the subsidiary as an indirect means of owning the aircraft in our fleet. As part of our corporate disclosure policy, we will also make the appropriate announcements to Bursa as and when there are material developments or change in circumstances in AACL,' said AirAsia.
This hasn't been AirAsia's greatest year. Its share price took a beating from its peak of RM2.60 to a low of 78 sen in late August, following GMT Research's concerns.
AirAsia has since made some adjustments after the GMT report emerged and its share price has recovered, making it a less-attractive privatization target. (kes)(+)
