Malaysia's AirAsia Group adds TPG, Aimia as investors in $82 mln fundraising

International Entertainment

17/03/2021 03:36

KUALA LUMPUR, March 17 (Reuters) - AirAsia Group Bhd
 AIRA.KL  has raised $82 million in a private share placement in
which it added TPG Capital executives and Aimia Inc to its
board, the Malaysian budget airline said on Wednesday as it
looks to ensure liquidity in 2021. 
    The airline raised 336.46 million ringgit ($81.70 million)
over two tranches by issuing 470.21 million new shares,
representing 14.07% of the group's total issued shares.
    The airline said investment firm TPG Capital's  TPG.UL 
founder and chairman David Bonderman and TPG Asia Partners,
including Tim Dattels, Ganen Sarbananthan and Zubin Irani, have
invested in their personal capacity.
    Hong Kong businessman Stanley Choi, chairman at Head &
Shoulders Financial Group  IPO-HDSH.HK  and executive director
at International Entertainment Corporation  1009.HK , also
participated.
    Choi has emerged as a substantial shareholder, raising his
stake to nearly 9% last month, bourse filings showed.
 urn:newsml:reuters.com:*:nL1N2KV0QS
    Montreal-based investment firm Aimia Inc  AIM.TO  and other
local and foreign institutional funds also invested, AirAsia
said, but did not share details of the size of the investments.
    AirAsia Group Chief Executive Tony Fernandes said the
placement is a significant part of the group's fundraising plan.
    "Of the gross total proceeds, AirAsia will allocate funds to
support fuel hedging settlement, general working expenses,
aircraft lease and maintenance payments and fund Airasia Digital
business units, namely the Airasia super app and BigPay fintech
platforms," he said.
    Fernandes last month said the airline expects more clarity
on its fundraising efforts, including a government-guaranteed
loan by the end of March.  urn:newsml:reuters.com:*:nL1N2KS0JB
    The airline had proposed in January a private placement of
up to 20% of its total issued shares, which if exercised fully,
was expected to raise about 454.5 million ringgit.  urn:newsml:reuters.com:*:nL4N2JW2XD

($1 = 4.1180 ringgit)

 (Reporting by Liz Lee; Editing by Arun Koyyur)
 ((liz.lee@thomsonreuters.com; Desk: +60323338039; Twitter:
@livinglizly;))