AirAsia: New share issuance lifts Kamarudin, Fernandes' combined stake in to 32.2pc

AirAsia Bhd completed the issuance and allotment of 559 million new ordinary shares to Tune Live Sdn Bhd, which raised AirAsia Executive Chairman Datuk Kamarudin Meranun and Group Chief Executive Tan Sri Tony Fernandes' combined stake in the airline to 32.2 per cent.

Tune Live is an investment holding company owned by Kamarudin and Fernandes.

AirAsia in a statement today said, with a subscription value of about RM1.01 billion, the shares issuance represented their continued commitment to supporting the growth and requirements of the airline.

"The cash raised through the shares issuance will be utilised for the pre-payment and repayment of borrowings, financing of aircraft, engines and parts, pre-delivery payments of aircraft and for general corporate and working capital," it said.

The utilisation of proceeds was expected to contribute positively to the airline's financial position through a more strengthened balance sheet and increased financing flexibility, it added. -- Bernama