KUALA LUMPUR (Sept 25): Two other parties — Singapore-listed Plato Capital Ltd and private equity firm Oxley Capital Ltd — have expressed interest in partnering AirAsia Bhd to set up a low cost airline in China.

On May 15, AirAsia had signed a memorandum of understanding with China Everbright Group, along with the Henan provincial government, to jointly explore the planned establishment of the budget airline known as AirAsia (China).

Today, AirAsia signed a non-binding term sheet with China Everbright, Plato and Oxley.

"The term sheet is valid for a period of no longer than 12 months from today for the parties to discuss and negotiate definitive agreements for the proposed joint venture," the Malaysian carrier said in a filing to Bursa Malaysia.

Plato is an investment holding company principally involved in hospitality, education and precision engineering sectors. Its directors are Lim Kian Onn (Gareth Lim Tze Xiang as alternate director), Michael Kan Yuet Yun, Chong Huai Seng and Oh Teik Khim.

Kian Ong is a controlling shareholder of Plato. He is also a substantial shareholder of ECM Libra Financial Group Bhd.

Meanwhile, AirAsia directors and major shareholders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun have an indirect shareholding of 6.33% each in Plato.

Private equity firm Oxley is headquartered in Singapore and specialises in real estate, agriculture or alternative energy, natural resources sectors and investments across the Asia-Pacific region.

AirAsia had previously announced that AirAsia (China) will be incorporated in Henan's capital city Zhengzhou, which is intended to be the headquarters of the new airline.

It had said the joint venture will also invest in the development of a low-cost carrier terminal, an aviation academy for pilots, engineers and crew training as well as a maintenance, repair and overhaul provider in the city.

AirAsia's share price rose 12 sen or 3.52% to RM3.53 today, with 15.65 million shares done, bringing its market capitalisation to RM11.8 billion. Year to date, the stock has gained about 54%.