Tuesday, August 4, 2009

AirAsia to sell 20% stake in $172 mln share placement

03 August 2009

KUALA LUMPUR - Southeast Asia's largest budget carrier, AirAsia (AIRA.KL), has finalised a plan to raise up to $171.6 million in a share placement to strengthen its balance sheet and increase its financing flexibility.

The airline plans to place out up to 481.1 million AirAsia shares, representing a 20 percent stake, to buyers to be identified later, it said in a statement to the stock exchange. "It (the share placement) will also reduce the current net gearing position of the company and its subsidiaries," it said.

Malaysia's No.2 bank, CIMB, is the adviser and placement agent for the exercise.

The amount to be raised is based on an indicative price of 1.25 ringgit per placement share, a discount of 3.1 percent to the 5-day weighted average market price of AirAsia shares up to July 27 of 1.29 ringgit, it said.

The stock ended on Monday at 1.54 ringgit.

The actual number of shares to be placed out will be determined after the airline obtains regulatory approvals, it said.

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