approval to issue new sharesAirAsia gets Bursa

KUALA LUMPUR: AirAsia Bhd has received approval from Bursa Securities for its proposed issuance and allotment of 559 million new ordinary shares of 10 sen each on April 14, 2016.

The shares will be issued at RM1.84 per share and be satisfied in cash.

In a filing to Bursa Malaysia today, it said the airline had on April 1 entered into a conditional subscription agreement with Tune Live Sdn Bhd, an investment holding company owned by both Tan Sri Anthony Francis Fernandes and Datuk Kamarudin Bin Meranun, pertaining to the matter.

The airline said the subscription shares would represent approximately 16.7 percent of AirAsia's enlarged issued and paid-up share capital.

"Based on the issue price, AirAsia would raise gross cash proceeds of RM1.006 billion," it said, adding that the proceeds would be utilised, among others, for pre-payment and repayment of the group's indebtedness and pre-delivery payments for aircraft, general corporate and working capital.