GEORGE TOWN (Oct 7): AirAsia Bhd has denied any knowledge of plans to take the budget airline private by its founders.

In response to news reports that the airline's co-founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun may take it private, AirAsia told Bursa Malaysia that it has no knowledge of a privatisation.

However, it confirmed that it is in discussion with certain bankers to partially finance the buy-back of its shares.

Reuters yesterday reported that founders of the airline are sounding out investors to take the airline private in a management-led buyout, citing people familiar with the matter.

"We were first made aware of the privatisation rumour since it surfaced in August this year with the airline's shares being actively traded. This was just prior to the airline announcing its proposal for a share buy-back of up to 10% on Sept 18," said AirAsia.

"The airline confirm that it is in discussion with certain bankers to partially finance the buy-back of these AirAsia shares," it added.

AirAsia noted that the circular for the proposed share buy-back to its shareholders is currently being drafted in preparation for the upcoming extraordinary general meeting tentatively to be held in November this year where shareholders’ approval will be sought.

As at 2.40pm, AirAsia (fundamental: 0.2; valuation: 1.2) shares were traded up 4.8% to RM1.31, with 78.08 million shares done. It reached an intraday high of RM1.35 in early trading today. Its market capitalisation stands at RM3.73 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)