Wednesday 28 September 2016

AirAsia: were all parties at the EGM equally informed? (2)

Announcement from AirAsia:

" ..... that the Company and the Subscriber have entered into a third supplemental letter dated 27 September 2016 in respect of the Subscription Agreement to extend the Cut-off Date of 27 September 2016 for a further period of sixty (60) days and expiring on 26 November 2016, or such longer period as the Parties may mutually agree in writing."

The first announcement about this share placement was on April 1st, 2016, about half a year ago.

Basically what the founders of AirAsia have received is a free call option on 559 Million AirAsia shares.

With AirAsia not paying any dividend (in other words no loss by buying the shares later) and the Cut-off Date being extended several times (saving interest charges, at least a few Million RM per month), it looks like a rather sweet deal for the founders of AirAsia.

I wrote before about this placement.


  1. I'm really surprised their shareholder base let them get away with this (EPF, JPMorgan, AIA, Capital, Vanguard, Blackrock etc)... Was there even shareholder vote on the placement?

  2. Yes, shareholders approved the issue in an EGM:

    But unfortunately no mentioning of percentage in favor and against.

  3. Ah Tony got money or not?

    1. I dont know, looks like he wants to borrow from outside the country

    2. He wants to borrow?

      Let me guess this correct. He creates an option to buy more shares in his own company but apparently he doesn't really have the money to pay for these shares which has now appreciated significantly.... up only 1.08 per share or 60% from the placement price of 1.80.

      Hello Tony, it's me I was wondering if after all these months you'd like to meet, to go over the placement price...

      Hello Tony, can you hear me?
      If you ain't got the money but I do...
      so do you want to borrow from US...
      WE would gladly offer you a loan at 15%...

      There's such a difference between US
      And it's just a couple of million bucks....