Hong Kong poker player raises stake in AirAsia Group

Stanley Choi Chiu Fai, a Hong Kong-based entrepreneur and professional poker player, has acquired a 4.17% stake in AirAsia Group, raising his shareholding to 8.96%, the group has revealed in several disclosures. He bought 167,098,704 shares in the company for MYR114.46 million ringgit (USD28.32 million) in a private placement. Choi bought the shareholding through a private vehicle, Positive Bloom Ltd, on February 18. He is also chairman of Hong Kong’s International Entertainment Corporation, an investment holding, and Head & Shoulders Financial Group, which specialises in financial services. The deal is part of a huge fundraising exercise at the AirAsia (AK, Kuala Lumpur Int’l) parent, which has said it aims to raise between MYR1.4 billion and MYR1.5 billion (USD346-371 million) worth of equity by deploying a private placement and a rights issue, as well as an intention to borrow a further MYR1 billion (USD247 million). While saying he remains optimistic about achieving the AirAsia Group’s fundraising target, CEO Tony Fernandes confirmed in a separate statement that “the first tranche of the private placement of up to 20% of the total issued shares in AirAsia Group Berhad was completed last week, with 11.07% placed out, raising a total of MYR250 million (USD61.85 million).” As previously reported, the group announced in January that it would be issuing up to 668.39 million new shares, or 20% of its current share capital, in the placement to raise about MYR454.51 million (USD112.5 million). Fernandes added in the statement: “This clearly reflects the solid market and investors confidence in the company. […] I am confident that AirAsia will recover faster than many due to our low-cost model, position in the market, and the fast-tracking of our digital transformation.” The group is working at obtaining approval for a loan under the Danajamin Prihatin Guarantee Scheme, a Malaysian financial guarantee insurer, within the next month, he said. AirAsia Group is also in discussions for other fundraising support measures in its key markets such as Thailand, Indonesia, and the Philippines, the chief executive added, and further capital raising and financial support measures are being considered including capital raising for the group’s digital entities. In related news, unnamed “industry sources” have told Reuters that AirAsia has been locked in tough negotiations with Airbus. The talks are focused, they said, on whether the group – one of the manufacturer’s biggest customers with around 400 aircraft on order – may be on the cusp both of delaying deliveries and of obtaining a partial return of deposits. Airbus and AirAsia declined to comment to ch-aviation. Meanwhile, on February 24, AirAsia Japan (DJ, Nagoya Chubu) revealed in a filing that it had commenced its court-ordered bankruptcy proceedings. The unit filed for bankruptcy on November 17, 2020. The company recognised a loss of USD74.11 million in the second half of 2020 in its Japan business, due to financial assistance and loans being written off, plus USD5.18 million in the fourth quarter of 2020 and first quarter of 2021 for aircraft de-registration expenses in moving AirAsia Japan’s three A320-200s from Japan to Malaysia.