Wednesday, May 2, 2012

Khazanah, Tune Air terminate share swap agreement between MAS and Air Asia

Flashback the share swap agreement on October 21, 2011

KUALA LUMPUR: Khazanah Nasional Bhd and Tune Air, the major shareholders of Malaysian Airline System Bhd (MAS) and AirAsia Bhd respectively had on Wednesday, 2nd May 2012, agreed to terminate their share swap agreement.

Following the termination of the agreement, Khazanah will take back the 685.14 million MAS shares representing a 20.50% stake in MAS held by Tune Air, according to announcements made by MAS and AirAsia to Bursa Malaysia.

Similarly, Tune Air will take back 277.65 million ordinary shares of 10 sen each in AirAsia held by Khazanah, representing approximately 9.99% equity interest in AirAsia.

Following the termination of share swap, the boards of MAS and AirAsia had agreed to mutually terminate the proposed warrants exchange and the warrants exchange agreement on October 21st, 2011.

With the latest development, the respective focus areas of MAS, AirAsia and AirAsia X Sdn Bhd as stated in the earlier collaboration agreement would cease.

The earlier focus areas were that MAS would focus on being a full-service premium carrier; AirAsia to focus on being a regional low-cost carrier (LCC); and AAX to focus on being a medium-to-long haul LCC.

Now, the airlines had entered into a supplemental collaboration agreement to explore areas of mutual-need to realise savings and boost efficiencies.

This would see both MAS and AirAsia jointly exploring the setting up of a joint-venture company by MAS, AirAsia and AirAsia X to provide aircraft component maintenance support and repair services.

They would also establish the broad set of business principles for the three parties to set up a special purposed vehicle (SPV) to improve value for money and to increase competitiveness and benefits to customers through procurement synergies

The shareholding of the SPV would see MAS holdings a 50% stake, AirAsia 35% and AAX 15%.

The SPV will provide services to MAS, AirAsia and AAX primarily comprising strategic sourcing services involving the design, strategy and conduct of procurement processes directed at achieving overall efficiencies and improved value for money for identified goods and services.

Meanwhile, the major shareholders of AirAsia, Tan Sri Tony Fernandes and Datuk Kamarudin Meranun have resigned as directors from MAS board.

MAS said that their resignations were pursuant to the letters of resignation as directors dated April 30 which it had it received on Wednesday.

Khazanah's representative on AirAsia board, Datuk Mohamed Azman Yahya had also resigned from AirAsia board.

Source : The Star Online

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