Adds particulars, background KUALA LUMPUR, Dec 29 (Reuters)
Adds particulars, background
KUALA LUMPUR, Dec 29 (Reuters) – Malaysian finances airline AirAsia Group Bhd AIRA.KL stated on Tuesday it plans to promote 32.67% of its stake in its Indian operations to majority shareholder Tata Sons TATAS.UL for $37.7 million.
The airline, which till now owned 49% of AirAsia India as a part of a three way partnership with the Indian conglomerate, stated the sale would permit it to concentrate on its restoration in its key Southeast Asian markets amid the impression of the COVID-19 pandemic on journey.
“The administrators having thought-about the rationale for the transaction and after cautious consideration, are of the opinion unanimously that the transaction is in the very best curiosity of AirAsia and its shareholders,” the airline stated in a bourse submitting.
The announcement comes two months after AirAsia shut its operations in Japan, citing extremely difficult circumstances amid the pandemic.
Group Chief Government Officer Tony Fernandes advised Reuters in September that the group supposed to consolidate and strengthen its foothold in Southeast Asia, which might imply exiting each Japan and India.
Final month, AirAsia introduced it was reviewing its funding in its India, saying its operations there had been draining money and including to the group’s monetary stress.
AirAsia Group stated it expects to finish the sale to Tata Sons by March 2021.
The group stated it has additionally agreed to waive unpaid model license charges payable by AirAsia India to subsidiary AirAsia Berhad.
The airline reported its fifth consecutive quarterly loss within the July-September interval because the pandemic took its toll on journey.
Fernandes has stated the corporate had disposed of spare engines to lift money and was open to different potential monetisation alternatives.
(Reporting by Rozanna Latiff, modifying by Louise Heavens and Susan Fenton)
(([email protected]; +61 3 9492 9423 ; Reuters Messaging: @rozlatiff on Twitter))
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