Friday, May 28, 2021

AirAsia Berhad values remaining 16% stake in India venture at $18.8m

AirAsia Berhad, which offloaded majority of its stake in AirAsia India (AAIL) to Tata Sons late last year, has earmarked its remaining 16% equity stake in the airline at $18.8 million.

In a stock exchange filing, AirAsia Berhad said it has classified its remaining stake in AirAsia India from “investment in associates” to “investment securities”, and “re-measured its stake to a fair value of $18.8 million”.

“On 29 December 2020, the group announced that its wholly-owned subsidiary, AAIL executed a share purchase agreement (SPA) with Tata Sons Private Limited (TSL) to sell 32.7% of AirAsia (India) Limited (AAI), comprising 490 million ordinary shares of ₹10 each, for a consideration of $37.7 million (or approximately RM152.9 million), which resulted in a gain on disposal of RM152.9 million,” the company said. RM is Malaysian ringgit.

“The SPA also provides for an option for the sale of AAIL’s remaining 16.3% stake in AAI. The total consideration in respect of the option is $18.8 million (or approximately RM76.5 million),” it added.

Tata Sons, which owns 83.67% stake in AirAsia India, also has the option to buy out AirAsia Bhd’s remaining 16.33% stake after the closure of the deal.

28/05/21 Rhik Kundu/Live Mint/Deal Street


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