AirAsia brushes off rumours of privatisation
KUALA LUMPUR - AirAsia Bhd has dismissed speculation that its major shareholders are looking to make an attempt at privatising the budget carrier.
Over the weekend, a business weekly reported that Tune Air (AirAsia founder) in partnership with China Everbright was planning to privatise AirAsia, citing sources familiar with the matter. However, company official stated they have not received any formal offer and would not comment.
“On behalf of the company, the board of directors wishes to inform that after making due enquiries with all the company’s directors, they are not aware of the reason for the article.
“The founders and Tune Air also indicated that they are not considering a privatisation at this stage,” AirAsia said in a filing with Bursa Malaysia.
On Monday, Maybank Investment Bank Research said the facts were unconvincing for a privatisation to happen this time.
It recalled that AirAsia had called for an Extraordinary General Meeting (EGM) on Dec 15, 2015 just to secure shareholders’ mandate to buy back 10% of its shares, effectively “sending a firm message that it is not for sale”
AirAsia has commenced its first buy back tranche shortly after announcing its fourth quarter 2015 results in February 2016.
“This maiden buy back proves that the management is making good of its ‘not for sale’ declaration. Furthermore, Tune Air has not accumulated shares in AirAsia for the past 12 months, according to filings to the Malaysian stock exchange. And if China Everbright has, the stake will be less than 5 per cent which does not require filing to the exchange,” it said.
