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AirAsia targets more than USD100 million in private share sale
Struggling AirAsia Group plans to raise $113 million in a private placement to address its immediate cash flow problems.
It will issue up to 20% of its total existing shares, it said in a stock market filing.
They will be placed with as yet unnamed third party investors.
Funds will be used to settle its fuel hedging accounts, marketing, aircraft lease and maintenance payments, as well as general working capital.
It says the funds will only meet its short term needs and it is still seeking further investment.
"The proposed private placement will not fully address the Group’s current financial concerns as the estimated gross proceeds would not be sufficient to meet long-term cash flow requirements."
The airline group closed down its Japan operations and is selling most of its India airline business to joint venture partner Tata Sons.
Long haul unit AirAsia X is currently undergoing a restructuring process.
Written by Ray Montgomery, Asia Editor
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TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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