Shareholders approve $415mn Thai AirAsia recapitalisation
Shareholders nearly unanimously approved a three-part recapitalisation package for Asia Aviation Public Limited Company, the parent company of Thai AirAsia, during an extraordinary general meeting on November 26, 2021.
The holding company is planning to raise a total of THB14 billion baht (USD415 million) divided into three parts:
a THB8.8 billion (USD261 million) capital raise through the issuance of new shares, including THB7.8 billion (USD231 million) from AirAsia Aviation Limited, the parent holding for all AirAsia Group-branded airlines, and THB1 billion (USD30 million) from six Thai individual investors,
THB2.2 billion (USD65 million) in convertible bonds issued to the Bangkok Bank Public Company Limited (THB1.2 billion (USD36 million)) and North Haven Thai Private Equity (THB1 billion (USD30 million)), and
a THB3 billion (USD90 million) share issuance to existing shareholders in proportion to their current stakes.
All of the resolutions for the individual parts of the recapitalisation package were approved by more than 99% of voting shareholders.
The carrier expects to receive the first tranche of THB11 billion (USD330 million) in December 2021 and the remainder of the funds in January 2022.
Asia Aviation initially planned to list Thai AirAsia on the Stock Exchange of Thailand as a new entity and subsequently close the parent holding. However, Asia Aviation later abandoned the plan favouring the now-accepted recapitalisation plan, which foresees Asia Aviation acquiring all shares of Thai AirAsia from AirAsia Aviation Limited. Currently, the Thai parent holding owns a 55% stake and the Malaysian group 45%.
However, since AirAsia Aviation Limited is participating in Asia Aviation’s capital raise, it will become a shareholder in the parent holding – swapping its current 45% direct stake in Thai AirAsia for a 40.7% stake in Asia Aviation. It will be the largest individual shareholder in the parent holding. Executive Chairman Tassapon Bijleveld will own an 18% stake in Asia Aviation after the share restructuring. Currently, Tassapon owns 40.5% of Asia Aviation and is the company’s largest individual stakeholder by a considerable margin.