KUALA LUMPUR (Sept 28): AirAsia Bhd is seeking more time to implement its proposed placement of 559 million new shares at RM1.80 apiece to its founders to raise RM1.01 billion.

The issuance is done via Tune Live Sdn Bhd, which is equally owned by the founders — AirAsia Group chief executive officer Tan Sri Tony Fernandes and executive chairman Datuk Kamarudin Meranun.

Yesterday, the company announced it had entered into a third supplemental agreement with Tune Live to extend the cut-off date of the subscription agreement of Sept 27, for a further 60 days, to Nov 26.

The extension was agreed upon to allow Tune Live more time to acquire the necessary approval from Bank Negara Malaysia (BNM), due to partial offshore borrowings involved.

The BNM approval is the final condition to the subscription agreement. Once obtained, the agreement shall become unconditional and completion for the proposed share issuance shall take place within 60 days after that.

"Pursuant to paragraph 6.62(1) of the Main Market Listing Requirements of Bursa Securities, the company is required to complete the proposed shares issuance within six months from the date the listing application was approved by Bursa Securities.

"Bursa Securities granted its approval for the proposed share issuance on April 14, which was announced on April 15. An application to seek an extension of time for the implementation of the proposed shares issuance [has] been submitted to Bursa Securities today," read the company's filing to the exchange today.

On May 9 this year, AirAsia's shareholders had given their approval at an extraordinary general meeting for the placement exercise, which will raise RM1.01 billion for AirAsia.

The subscription shares account for 16.7% of AirAsia's enlarged issued and paid-up share capital, which will raise both founders' stake from 18.9% to 32.5% upon completion of the placement exercise.

At 3.56pm, AirAsia rose five sen or 1.8% to RM2.83, for a market value of RM7.82 billion.