According to a Bursa Malaysia filing released last week, AAB has proposed to exchange 3.34 billion ordinary shares in AAB, with new ordinary shares in AAG, on the basis of one new AAG share for one existing AAB share. The proposed internal reorganisation will separate the investment holding function and the Malaysian airline business.
“Under the newly established corporate structure, the management will have greater flexibility to further streamline its group structure and businesses as deemed fit. This will also segregate the listed entity from the current Malaysian airline business and the group’s investments.
“Such structure will also provide ease of supervision and regulation by the management of the group and the relevant regulators governing the airline industry,” it was said in the statement to the Malaysian stock exchange.
Apart from that, AAB has also announced that it has executed multiple agreements to partially dispose and subsequently convert its perpetual securities investments in PT Indonesia AirAsia (IAA) into new shares in Indonesia Stock Exchange-listed PT Rimau Multi Putra Pratama TBK (RMPP).
Following that, RMPP shall be the new holding company of IAA.
The rationale behind this move is to unlock the value of IAA, improve the visibility, transparency, and public accountability of IAA to the passengers, as well as support the financing needs of AirAsia Group’s growth ambition in Indonesia through the capital markets.
In a different release, AirAsia announced a 73% drop in net profit to RM92.45mil for the second quarter ended June 30, 2017 (Q2FY17), as compared with RM342.12mil the previous corresponding quarter.
However, the group’s revenue for the quarter grew 46.5% to RM2.38bil, on the back of a 10% growth in total passengers carried as well as a strong seat load factor of 89%, as compared to 87% in the corresponding quarter last year.
Average fares also rose 11% from RM160 last corresponding quarter to RM177 in Q2FY17.
Going forward, the group is expected to achieve an average load factor of 88% in the third quarter of 2017, based on the existing forward booking trend.
“For the remaining quarters of 2017, we remain optimistic as we continue to observe strong demand across most sectors, coupled with a stable fuel price and foreign exchange environment.
“The group is also planning to increase an additional 22 planes through a combination of finance and operating leases in the second half of 2017.
“This will be one of the fastest pace of expansion in the last few years, made possible due to the favourable competitive and operating environment of aviation in Asia,” said AirAsia.
(Source: Bernama/ The Star)