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AirAsia To Go Private?
Malaysia Daily Bulletin | 07 October 2015
  • Founders of AirAsia are sounding out investors to take the company private in a management-led buyout, after its shares took a beating this year.
  • According to sources, the airline’s boss Tan Sri Tony Fernandes and his long-time business partner Datuk Kamarudin Meranun are working with banks to secure financing for the transaction.
  • The airline’s market value has fallen 40 percent to RM3.5 billion since Hong Kong-based GMT Research questioned its accounts in a report in June, at a time when the firm was under pressure to turn around its loss-making affiliates and was being squeezed by industry overcapacity.

Significance: The possible move would probably not be considered surprising, as Fernandes has steadfastly defended the company’s finances and outlook and said the market was undervaluing it. According to the unidentified source, a management-led buyout could be launched over the next few months.

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