Thai AirAsia parent completes $425mn recapitalisation

Asia Aviation Public Limited Company (AAV), majority owner of Thai AirAsia (FD, Bangkok Don Mueang), has completed a THB14 billion baht (USD424 million) recapitalisation that has seen AirAsia Aviation Limited (AAA) become the company’s largest shareholder.

The Thai holding executed the recapitalisation in three stages. On December 14, it allocated over 5 million new shares in a private placement, raising THB8.8 billion (USD267 million) in the process. According to a stock market filing, the bulk of the shares (4.46 million) was allocated to AirAsia Aviation Limited, the parent holding of all AirAsia Group-branded airlines, giving the Malaysian group a 45.12% stake in the Thai holding. The remaining shares were allocated to six individual Thai investors, who were previously not shareholders in AAV. Pitharn Ongkosit became a 3.7%-shareholder in the holding while Palin Lojanagosin obtained a 1.5% stake. The remaining five shareholders hold a 0.1% stake each.

Subsequently, on January 18, the Thai holding issued 1.7 million new shares worth THB3 billion (USD91 million) to existing shareholders (including those that became investors in December 2021). This issuance did not alter the company’s shareholding structure.

The airline also issued THB2.2 billion (USD67 million) worth of convertible debentures to the Bangkok Bank Public Company Limited and North Haven Thai Private Equity.

Following these adjustments, which complete the group’s recapitalisation plan approved in November 2021, AirAsia Aviation is AAV’s main shareholder with its 45.1% stake. The previous majority owner, the group’s chairman Tassapon Bijleveld, now controls a 19.9% stake. Despite AirAsia being the holding’s largest shareholder, more than 50% of AAV stock remains owned by Thai nationals to comply with the country’s effective control and ownership rules.

As previously announced, AAV will now proceed with the acquisition of all shares in Thai AirAsia to become the airline’s only shareholder. Currently, the LCC is 55%-owned by AAV and 45% by AirAsia Aviation.