BRIEF-Airasia Says Asia Aviation To Inject 3,900 Mln Baht Into Thai Airasia Co

Oct 21 (Reuters) – Airasia Group Bhd AIRA.KL:

• ASIA AVIATION NOTIFIED ITS SHAREHOLDERS OF RESOLUTIONS PASSED AT AAV’S BOARD OF DIRECTORS MEETING

• RESOLUTIONS REGARDING AAV/TAA RRESTRUCTURING AND RECAPITALISATION PLAN

• AAV TO INJECT 3,900 MILLION BAHT INTO TAA VIA NEW EQUITY ISSUANCE

• AAV TO INCREASE ITS DIRECT HOLDINGS IN THAI AIRASIA CO FROM 55.0% TO 69.2%

• ENTIRE PROCEEDS FROM NEW EQUITY ISSUANCE WILL BE USED BY TAA TO REPAY PART OF INTERCOMPANY BALANCES OWED TO AAGB & UNITS

• AAA WILL DISPOSE OF ITS 30.8% STAKE IN TAA FOR 3,800 MILLION BAHT

• RECAPITALISATION PLAN INVOLVES PROPOSED AAV PRIVATE PLACEMENT FOR UP TO 8,800 MILLION BAHT AT 1.75 BAHT PER SHARE

• FROM AAV PLACEMENT, AAA TO TAKE UP TO 7,800 MILLION BAHT

• AIRASIA – FROM AAV PLACEMENT, NEW INVESTORS TO RAISE UP TO 1,000 MILLION BAHT

• PROPOSED AAV CONVERTIBLE BOND ISSUANCE OF 2,200 MILLION BAHT TO 2 INVESTORS

• ON COMPLETION OF AAV PRIVATE PLACEMENT & CONVERTIBLE BOND ISSUE, AAV WILL UNDERTAKE RIGHTS OFFERING FOR UP TO 3,000 MILLION BAHT

• RIGHTS OFFER PRICE OF 1.75 BAHT PER SHARE, WITH AAA SUBSCRIBING FOR ITS ENTITLEMENT AMOUNTING TO 1,353 MILLION BAHT

• AAA’S ENTITLEMENT IN PROPOSED AAV RIGHTS OFFERING TO BE FULLY FUNDED VIA BANK BORROWINGS

• RECAPITALISATION OF TAA WILL PUT IT ON STRONGER FOOTING TO QUICKLY REGAIN MARKET DOMINANCE IN DOMESTIC AIR TRAVEL WITH INCREASED MARKET SHARE

• ON COMPLETION, AAGB’S STAKE IN TAA WILL BE VIA LISTED AND TRADED SHARES OF AAV

• UNRECOGNISED LOSSES IN TAA WILL IMMEDIATELY CRYSTALLISE TO 791 MILLION RGT AS AT 30 JUNE 2021

• LOSSES RECOGNISED WILL DECREASE NET ASSETS BY 791 MN RGT & EARNINGS PER SHARE BY 0.20 RGT AS AT 30 JUNE 2021

• PROPOSALS EXPECTED TO BE COMPLETED IN Q1 OF 2022

Source text for Eikon: ID:nKLS8qkCNK

Further company coverage: AIRA.KL

(Reuters.briefs@thomsonreuters.com)