Tune Live share subscription in AirAsia now unconditional

SEPANG: AirAsia Berhad announced Wednesday that its subscription agreement with Tune Live Sdn Bhd (Tune Live) has become unconditional pursuant to Tune Live receiving its approval from Bank Negara Malaysia (BNM) for its partial offshore funding.The funding relates to the proposed issuance and allotment of 559 million new ordinary shares in AirAsia Berhad at RM1.80 each. Bank Negara Malaysia approval was the final condition precedent to the proposed shares issuance.

Payment for the subscription shares shall be made within 60 days, or such other date as the parties may agree, with its issuance and allotment within eight market days after such payment. The new shares issued pursuant to this agreement will rank pari passu to all other existing shares in issue.

AirAsia Berhad had on 1 April 2016 entered into a conditional subscription agreement with Tune Live, an investment holding company owned by AirAsia Berhad Executive Chairman Datuk Kamarudin Meranun and AirAsia Group CEO Tony Fernandes for the proposed shares issuance.

Stay up-to-date by following Daily Express’s Telegram channel.

Daily Express Malaysia

Upon the completion of the proposed shares issuance, AirAsia Berhad will receive cash proceeds of approximately RM1.01 billion. The cash proceeds are to be utilised by AAB principally for the pre- payment and repayment of borrowings, financing of aircraft, engines and parts, pre-delivery payments of aircraft as well as for general corporate and working capital.

SPONSORED CONTENT

Sabah revenue hits RM6.97 billion: Hajiji says GRS State Government may see full term

Kota Kinabalu: The Sabah Government continued its momentum in managing the economy in line with the commitment and spirit of the Sabah Maju Jaya (SMJ) when it posted record high state revenue of RM6.973 billion last year.

The utilisation of proceeds is expected to contribute positively to AirAsia Berhad's financial position through a more strengthened balance sheet and increased financing flexibility.

Try 1 month for RM 18.00

Try 1 month for RM 18.00

Try 1 month for RM 18.00