Newco to take over listing status of AirAsia Bhd by Q1 2018

KUALA LUMPUR: In a surprise move, AirAsia Bhd (AAB) yesterday proposed an internal re-organisation that involved the exchange of the entire issued share capital for new ordinary shares in a new company (newco) AirAsia Group Bhd, as well as, the transfer of its listing status.

The number of ordinary shares that is involved in the proposed internal re-organisation, expected to be completed by the first quarter of 2018, is 3,341,974,080.

In a filing to Bursa Malaysia, AAB said, based on the current corporate structure, it would act as the listed investment holding company of the group, as well as, the operating company for the provision of air transportation services in Malaysia.

“Through the proposed internal reorganisation, the investment holding function and the Malaysian airline business will be separated, wherein the newco will become the investment holding vehicle assuming the listing status of AAB, while AAB will continue to operate the Malaysian airline business,” it added.

Under the newly established corporate structure, the management of the company, would, among others have the flexibility to further streamline its group structure and businesses/operations as the management deems fit and segregate the listed entity from the current Malaysian airline business, as well as, the group's investments.

“Such structure will also provide ease of supervision and regulation by the management of the group and the relevant regulators governing the airline industry,” it said. —