KUALA LUMPUR (March 29): India-based Tata Sons is raising its stake in AirAsia India to 49%, from 41.06%, by acquiring 7.94% in the budget airline from Arun Bhatia's Telestra Tradeplace.

In a statement, Tata Sons said it had signed an agreement with AirAsia India and Telestra, alongside AirAsia India directors S. Ramadorai and R. Venkataramanan.

"The agreement was entered into on March 14, 2016, and the transaction is proposed to be completed in April 2016, subject to completion of the relevant corporate approvals and processes," Tata Sons said.

According to Tata Sons, Ramadorai and Venkataramanan have proposed to buy Telestra's remaining 2% stake in AirAsia India.

"Mr Ramadorai and Mr Venkataramanan, in their individual capacity, propose to acquire 0.5 percent and 1.5 percent shareholding respectively of Telestra’s remaining 2 percent equity stake in the company, Tata Sons said.

Tata Sons said AirAsia Investment would continue to own a 49% stake in AirAsia India. AirAsia Bhd owns AirAsia Investment.
 
AirAsia Bhd group chief executive officer Tan Sri Tony Fernandes said via Twitter that Tata Sons' move to raise its AirAsia India stake was an indication of Tata Sons' confidence in the airline.

"Great to see Tata and board members so confident on the future of Airasia India. I'm thrilled," Fernandes said.

At Bursa Malaysia today, AirAsia Bhd shares fell eight sen or 4% at 12:30pm to settle at RM1.81, for a market value of RM5.09 billion.

The stock saw some 61 million shares traded.