Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 29): AirAsia Bhd, Asia's largest low-cost carrier, plans to establish a holding company under which its airline operation in Malaysia and its various regional affiliates will come under its control.

The new holding company structure will see AirAsia's Malaysian operation, its five affiliates in the Philippines, India, Thailand, Indonesia and Japan, as well as its digital-related services and intellectual properties consolidated into five separate business segments.

In a filing with Bursa Malaysia today, AirAsia said the proposed structure will see the transfer of the associate companies held under AirAsia Investment Ltd (AAIL) and involved in regional airline business to the new holding company to be known as AirAsia Group Bhd, where upon completion AAIL may be liquidated.

AirAsia Group will become the investment holding vehicle assuming the listing status of AirAsia, while AirAsia will continue to operate the Malaysian airline business as a wholly-owned subsidiary of AirAsia Group.

AirAsia said such structure will enable the management to have the flexibility to further streamline its group structure and businesses or operations as management deems fit.

It will also provide ease of supervision and regulation by the management of the group and the relevant regulators governing the airline industries, it added.

The proposed internal reorganisation also involves AirAsia exchanging 3.34 billion shares (including treasury shares) -- representing the entire issued share capital -- as at Aug 14, 2017, being the latest practicable date prior to the date of this announcement, with 3.34 billion new shares in AirAsia Group.

“The reference price of the newly-listed AirAsia Group shares on Bursa Malaysia will be the last closing price of AirAsia shares on the market day prior to the suspension of trading on Bursa," said AirAsia.

The proposed exercise is conditional upon the following approvals from AirAsia shareholders at a forthcoming extraordinary general meeting and a court convene meeting.

"Barring any unforeseen circumstances, the proposed internal reorganisation is expected to be completed by the first quarter of 2018," said AirAsia.

Trading in AirAsia shares and structured warrants was suspended from 2.30pm today, pending the announcement. The stock ended the morning session up 2 sen or 0.6% at RM3.33, with 6.13 million shares done, bringing a market capitalisation of RM11.13 billion. Trading will resume tomorrow.
 

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