AirAsia Group sells 32.7pc of AirAsia India for RM152.6m

In a filing with Bursa Malaysia, it said AAIL today entered into a share purchase agreement (SPA) with the India-based TSL, which already owned 51 per cent interest in AAI. — Reuters pic
In a filing with Bursa Malaysia, it said AAIL today entered into a share purchase agreement (SPA) with the India-based TSL, which already owned 51 per cent interest in AAI. — Reuters pic

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KUALA LUMPUR, Dec 29 — AirAsia Group Bhd’s wholly-owned subsidiary, AirAsia Investment Ltd (AAIL), is disposing of its 32.67 per cent equity interest in AirAsia India Ltd (AAI) to Tata Sons Private Ltd (TSL) for US$37.66 million (RM152.58 million).

In a filing with Bursa Malaysia, it said AAIL today entered into a share purchase agreement (SPA) with the India-based TSL, which already owned 51 per cent interest in AAI.

AirAsia Group said the proposed disposal would result in a gain on disposal of RM152.58 million in the fourth quarter of 2020 at both AAIL and consolidated group levels.

“The net assets and cash balance of AAIL will also increase by the same amount immediately after this cash disposal exercise,” it said.

As part of the transaction, there will be a call option in respect of AAIL’s remaining 16.33 per cent stake in AAI, exercisable by TSL at any time after the transaction is completed.

In addition, there will also be a put option exercisable by AAIL in two tranches, with the first tranche being exercisable from March 1, 2022, until May 30, 2022, and the second tranche being exercisable from October 1, 2022, to December 31, 2022.

The total consideration in respect of the options granted for AAIL’s remaining 16.33 per cent stake would be US$18.83 million.

The airline said AAIL had further agreed to waive off unpaid brand license fees payable by AAI to AirAsia Bhd under the brand licence and technical services agreement dated December 30, 2019, due to the Covid-19 pandemic.

It added that this waiver would not have any material effect on the earnings per share, net assets per share and gearing of AirAsia and its subsidiaries. — Bernama

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