Tune Live share subscription in AirAsia now unconditional

SEPANG: AirAsia Bhd (AirAsia) has announced that its subscription agreement with Tune Live Sdn Bhd ( Tune Live) has become uncondit ional pursuant to Tune Live receiving its approval from Bank Negara Malaysia ( BNM) for its partial offshore funding.

The funding relates to the proposed issuance and allotment of 559 million new ordinary shares in AirAsia Berhad at RM1.80 each.

According to a statement, BNM’s approval was the final condition precedent to the proposed shares issuance.

P a y me n t for the subscription shares shal l be made within 60 days, or such other date as the parties may agree, with its issuance and allotment within eight market days after such payment.

The new shares issued pursuant to this agreement will rank pari passu to all other existing shares in issue.

Earlier this year, on April 1, AirAsia had entered into a conditional subscription agreement with Tune Live, an investment holding company owned by AirAsia executive chairman Datuk Kamarudin Meranun and AirAsia Group chief executive officer Tony Fernandes for the proposed shares issuance.

Upon the completion of the proposed shares issuance, AirAsia will receive cash proceeds of approximately RM1.01 billion.

The cash proceeds are to be utilised by AAB principally for the prepayment and repayment of borrowings, financing of aircraft, engines and par ts, pre- del ivery payments of aircraft as well as for general corporate and working capital.

The utilisation of proceeds is expected to contribute pos it ively to Ai rAs ia’s financial position through a more strengthened balance sheet and increased financing f lexibility.