KUALA LUMPUR (June 15): Integrated financial services conglomerate, the Orix Corp, which is Japan’s largest general leasing firm, has ceased to be a substantial shareholder in Air Asia X (AAX) Bhd.

In a filing with Bursa Malaysia today, AAX said Orix Corp ceased to be a substantial shareholder after its stake was diluted following AAX’s rights issue with warrants.

The stakes were under held by its indirect subsidiary Orix Airline Holdings Ltd (Orix Airline).
 
According to AAX’s Annual Report 2014, Orix Airline held a direct 5.23% stake in AAX, which gives Orix Aviation Systems (a wholly owned subsidiary of Orix Corp) and Orix Corp both an indirect 5.23% stake in AAX by virtue of their interests in Orix Airline.

AAX had proposed a rights issue with warrants in January to raise up RM391 million to be utilised for repayment of borrowings, general working capital and expenses in relation to the corporate exercise.

The rights issue exercise was priced at 22 sen per rights share, and at an entitlement basis of three rights shares for every four existing AAX shares, with a free warrant for every two rights shares subscribed, with an exercise price of 46 sen.

In an April 30 note, PublicInvest Research said while the rights issue exercise will improve the group’s liquidity, the research firm expected the market to be cautious on AAX’s earnings prospects.

AAX shares closed one sen or 4.35% lower at 22 sen, with a market capitalisation of RM912.59 million.