Thursday, November 27, 2008

AirAsia silent on delisting

KUALA LUMPUR - MALAYSIAN budget carrier AirAsia on Wednesday refused to comment on reports that it may soon be privatised and delisted from the Kuala Lumpur stock exchange.

Dow Jones Newswires quoted unnamed sources as saying the region's largest low-cost airline may begin its delisting process from the local stock market within two weeks.

'Nothing is finalised yet but if there are no glitches it could happen within two weeks,' the source told Dow Jones.

The Star newspaper last week cited sources as saying that AirAsia's major shareholders are nearing completion of a deal to finance a buyout and that the controlling shareholder, Tune Air Sdn Bhd, would announce a general offer.

'I have no idea where that is coming from. I have no comments,' the carrier's chief executive officer Tony Fernandes told AFP.

Tune Air owned 30.7 per cent of AirAsia's shares as of the end of March this year. Its shareholders are Mr Fernandes himself and Kamarudin Meranun, who is AirAsia's deputy chief executive officer.

'We have already mentioned our intention but at this time I cannot make any comments,' Mr Kamarudin told AFP.

According to the Star's report the indicative offer price is estimated between RM1.30-RM1.35 a share. Tune Air would have to spend RM2.14-RM2.22 billion ringgit (S$892 - S$925 million dollars) to buy the remaining stake.

AirAsia last month said it was exploring 'various options' and was focused on ensuring the carrier remained profitable during challenging times, as the global economy slows.

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