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Malaysian National News Agency

AirAsia Shares Slip Amid Internal Reorganisation Plan
Business
August 30, 2017 12:41 PM
KUALA LUMPUR, Aug 30 (Bernama) -- AirAsiaBhd's (AAB) shares easedone senduring the morning session today after being suspended during the afternoon session on Tuesday onannouncingplans for aninternal reorganisation and proposed transfer listing status to a new company.

At 12.02 pm, itstrading volume stood at 12.79million sharesat RM3.32 per unit.

The carrier hadannounced aproposal foraninternal reorganisation which involvedtheexchange of itsentire issued share capital for new ordinary shares in a new company,AirAsia Group Bhd.

It had also announcedthe transfer of its listing status, expected to be completed by the first quarter of 2018.

In a separate update,AAB and its wholly-owned unit, AirAsia Investment Ltd, hadexecuted multiple agreements to partially dispose of and subsequently convert its perpetual securities investments in PT Indonesia AirAsia into new shares in PT Rimau Multi Putra Pratama TBK.

AAB hadalso announced that it hadprovided financial assistance, in the form of a US$6 million (RM25.58 million)loanto PT Indonesia AirAsia.

The low-cost carrier also released its results, revealing that its pre-tax profit soared52.4 per cent to RM386.8 million forthe second quarter ended June 30, 2017 from RM253.81 million forthe same quarter last year.

Group Chief Executive Officer, Tony Fernandessaidthat he was super happy with AirAsia'sresults.

"All airlines inASEAN are making money. Yields are up, costs down," he said in a tweet today.

Meanwhile, most research houses maintained their call on AAB.

Hong Leong Investment Bank Bhd maintained its 'buy' rating, but revisedAirAsia'starget priceto RM4.10 from RM3.82 as the airline is expected to remain on a growth trajectory from strong capacity expansion, high load factors and low jet fuel costs.

Public Investment Bank reiterated its 'neutral' view on the company withtarget price of RM3.19.

--BERNAMA




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