ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Transportation

AirAsia Group raises $82m as TPG executives take part

Hong Kong businessman Stanley Choi and Canadian company Aimia also join

AirAsia has raised $82 million to help pay for fuel hedging settlement, general working expenses, aircraft lease and maintenance payments and fund Airasia Digital business units.   © Reuters

KUALA LUMPUR (Reuters) -- AirAsia Group Bhd has raised $82 million from TPG Capital executives, Aimia Inc and others through a private share placement, 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 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, also participated.

Choi has emerged as a substantial shareholder, raising his stake to nearly 9% last month, bourse filings showed.

Montreal-based investment firm Aimia Inc 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. The airline has said it plans to raise up to 2.5 billion ringgit through debt and equity.

"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.

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more