AirAsia raises up to $ 244 million in rights issue

AirAsia Group has revealed plans to raise up to MYR 1.024 billion (US $ 244 million) through a waiver of rights issue, with funds to be diverted to working capital and operating costs of the group, as well as further strengthen diversification efforts through its AirAsia Digital Businesses.

The cash call to its shareholders includes Islamic Convertible Unsecured Seven-Year Redeemable Debt (RCUIDS), based on two RCUIDS with one warrant for six AirAsia shares held, the group said in a filing. Bursa Malaysia. Each RCUIDS share is also convertible into one new AirAsia share on an individual basis.

The proposed rights issue is expected to be finalized in the fourth quarter of 2021, he added, and AirAsia’s parent company (AK, Kuala Lumpur Int’l) “is also well advanced in talks to secure a number other fundraising initiatives “.

AirAsia Group CEO Tony Fernandes has pledged that “the exercise will provide a platform to seek a new injection of funds from shareholders to maintain liquidity during flight downtime and fuel growth leading non-airline digital companies “.

AirAsia is seeking “unconditional and irrevocable written commitments” for a full subscription from the group co-founders Fernandes and Kamarudin Meranun and their investment vehicles Tune Live and Tune Air. Tune Air has a 13.25% stake in the company, Tune Live 13.06%, while Fernandes and Meranun themselves have direct stakes of 0.04% and 0.05%, respectively.

Collectively, the two, who therefore control a 26.4% stake in AirAsia Group, are expected to inject MYR 257.27 million ($ 61.38 million) in new capital into the company. The other major shareholder, Stanley Choi Chiu Fai, a Hong Kong-based entrepreneur and professional poker player, holds 8.53% as of June 30. He took out a private placement earlier this year.

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