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

October 21, 2021By 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)

This article originally appeared on reuters.com

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