AirAsia completes placements of shares to founders

PETALING JAYA: AirAsia Bhd has completed the issuance and allotment of 559.00 million new ordinary shares to Tune Live Sdn Bhd, increasing the combined shareholding of AirAsia Bhd executive chairman Datuk Kamarudin Meranun and group CEO Tan Sri Tony Fernandes to 32.3%.

This puts their shareholding just marginally below the 33% threshold which would necessitate a mandatory general offer for the shares they do not own in AirAsia. Tune Live is an investment holding company owned by Fernandes and Kamarudin.

In a statement yesterday, AirAsia said the subscription value of RM1.01 billion represents the two’s continued commitment to support the growth and requirements of AirAsia.

The cash raised through the shares issuance will be utilised by AirAsia for the pre-payment and repayment of borrowings, financing of aircraft, engines and parts, pre-delivery payments of aircraft as well as for general corporate and working capital.

The proceeds from the share issuance areexpected to contribute positively to the group’s financial position, through a more strengthened balance sheet and increased financing flexibility.