STREAMLINING OPS
AIRASIA Bhd will undergo an internal reorganisation involving a share swap and transfer of listing to new company AirAsia Group Bhd
that will act as the group’s investment holding vehicle.
KUALA LUMPUR: AirAsia Bhd is undertaking an internal reorganisation that entails a transfer of its listing to a new company (newco) called AirAsia Group Bhd.
The reorganisation, announced on the day the low-cost airline posted lower earnings in the second quarter due to deferred tax charge, will see 3.34 billion AirAsia shares swapped with newco shares on a one-for-one basis.
AirAsia, in an announcement to Bursa Malaysia yesterday, said the investment holding function and the Malaysian airline business will be separated under the reorganisation.
This means the newco will become the investment holding vehicle, assuming the listing status of AirAsia, while the latter will continue to operate the Malaysian airline business.
The streamlining exercise will see all AirAsia’s subsidiaries, jointly controlled entities and associate companies segregated into regional operation, intellectual property and digital service divisions, and transferred to the newco.
Under the newly-established corporate structure the management of the company will have the flexibility to further streamline its structure and operations.
“Such a structure will provide ease of supervision and regulation by the management and the relevant regulators governing the airline industries.
“It will unlock the value of AirAsia’s investment in its subsidiary, joint venture and associate companies and facilitate future spinoff of its operations,” it said.
AirAsia founders Datuk Kamarudin Meranun and Tan Sri Tony Fernandes will still be the largest shareholders of the newco through Tune Live Sdn Bhd at 16.73 per cent. The remaining 83.27 per cent will be owned by Tune Air Sdn Bhd (15.45 per cent) and minority shareholders (67.82 per cent).
Meanwhile, AirAsia Bhd is partially disposing of its stake in PT Indonesia Air Asia (IAA) in return for a stake in PT Rimau Multi Putra Pratama.
This will be done by converting its perpetual securities investments in IAA into new shares in Rimau Multi. The transaction will see PT Rimau being the new holding company of Indonesia AirAsia.
Upon completion, AirAsia will own 48 per cent in Rimau Multi and 20.95 per cent in Indonesia AirAsia.
AirAsia said the rationale for the proposed transaction is to support the financing needs of AirAsia Group’s growth ambition in Indonesia and improve visibility, transparency and public accountability of IAA to the passengers.
Rimau Multi is involved in transportation, warehouse, industry and general trade with net assets of RM10.62 million.
AirAsia will resume trading today. Its last price before the trading was suspended at 2.30pm yesterday was RM3.33, two sen higher than Monday’s close of RM3.31. Amir Hisyam Rasid