AirAsia says no knowledge of privatisation

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The circular to shareholders is currently being drafted in preparation for the upcoming Extraordinary General meeing tentatively to be held in November this year where shareholders’ approval will be sought for the proposed share buy-back.

The circular to shareholders is currently being drafted in preparation for the upcoming Extraordinary General meeing tentatively to be held in November this year where shareholders’ approval will be sought for the proposed share buy-back.

KUCHING: AirAsia Bhd (AirAsia) yesterday clarified that it has no knowledge of any privatisation moves.

“We were first made aware of the privatisation rumour since it surfaced in August this year with the company shares being actively traded,” it said in a statement to Bursa Malaysia yesterday.

“This was just prior to the company announcing its proposal for a share buy-back of up to 10 per cent on September 18.

“The company confirms that it is in discussion with certain bankers to partially finance the buy-back of these AirAsia shares.”

According to the group, the circular to shareholders is currently being drafted in preparation for the upcoming Extraordinary General meeing tentatively to be held in November this year where shareholders’ approval will be sought for the proposed share buy-back.

Reuters on Monday reported that AirAsia cofounders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun – who collectively own 19 per cent via Tune Air Sdn Bhd – are in talks with banks to secure funding to privatise the airline.

Meanwhile, AirAsia’s  share price spiked yesterday on the privatisation news. Yesterday, its shares rose by seven sen or 5.6 per cent to close at RM1.32 per share. About 1.07 million shares exchanged hands in yesterday’s trade.

AirAsia late Monday also revealed that its Japanese unit has been granted the Air Operator’s Certificate by the Civil Aeronautics Act by Ministry of Land, Infrastructure, Transport and Tourism under the air transport business.

AirAsia Japan is scheduled to commence operations from their base at Chubu Centrail International Airport in Aichi prefecture to Shin-Chitose Airport in Sapporo, Sendai Airport in Sendai, and Taiwan Taoyuan International Airport in Taiwan by spring of 2016.