PETALING JAYA: AirAsia Group Bhd has entered into a memorandum of understanding with Aimia Holdings UK II Ltd for the proposed acquisition of the remaining 1.67 million shares in BigLife Sdn Bhd which are not already held by the group.
The sale, representing 20% equity interest in BigLife to AirAsia Digital Sdn Bhd will be satisfied via the issuance of 85.86 million shares or an additional 2.2% stake in AirAsia, taking Aimia’s ownership to an approximate 3.1% equity stake in AirAsia upon completion of the transaction from the current 0.93% following Aimia’s participation in the second tranche of AirAsia’s private placement recently.
The transaction is expected to complete before the end of May.
AirAsia group CEO Tan Sri Tony Fernandes said Aimia’s decision to strengthen its position in AirAsia, gives further confidence in the group’s turnaround strategy post-pandemic.
“As we continue to diversify and offer an even larger range of products and services leveraging our travel and lifestyle ecosystem via the airasia super app, BigLife is on track to become the most beneficial loyalty currency in the region.
“With full ownership of BigLife, we will have more flexibility to drive growth to become Asean’s number one redemption platform, including our points exchange programme – BIG Xchange, that allows members to convert banking and other loyalty points immediately as a universal exchange hub for two way conversion between loyalty points,” he said.
Aimia CEO Phil Mittleman commented that by exchanging its minority position in BigLife for publicly traded stock in AirAsia, it will participate in what it believes will be significant upside in AirAsia’s equity, with the added benefit of liquidity.
“We fully support the airline’s recent efforts to strengthen its financial position and pursue its digital transformation, and we believe that AirAsia will emerge from the pandemic as a stronger airline.”
