AirAsia gets RM240m in proceeds following Fly Leasing-Carlyle Aviation merger

AirAsia gets RM240m in proceeds following Fly Leasing-Carlyle Aviation merger

KUALA LUMPUR (Aug 5): AirAsia Group Bhd has received US$56.83 million (RM239.98 million) in gross proceeds from the merger between Fly Leasing Ltd and Carlyle Aviation Partners.

In a statement, the low-cost carrier said AirAsia held a 10.94% stake in Fly Leasing prior to the merger.

The stake was acquired in August 2018 as part of a cash-in-kind consideration for the earlier divestment of AirAsia’s aircraft leasing operations undertaken by Asia Aviation Capital Ltd to entities managed by BBAM Limited Partnership.

“Our plan to raise up to RM2.5 billion through a combination of borrowing and equity raising is on track. This transaction delivers a welcome boost to our overall fundraising strategy.

“We have already raised RM336.5 million from two tranches of private placements earlier this year and continue to renegotiate leasing terms with all of our lessors. We have also disposed of 32.67% of our interest in AirAsia India, amounting to US$37.68 million (RM152.64 million), ceased operations in Japan and sold a number of spare engines amounting to over US$130 million,” said AirAsia group chief executive officer Tan Sri Tony Fernandes.

There are a number of other fundraising initiatives in place to ensure sufficient liquidity for the group, which are progressing well, he said, adding that the group is in the process of finalising a Danajamin PRIHATIN Guarantee Scheme loan, working on a data-backed loan of up to US$350 million, and preparing for a rights issue of up to RM1.02 billion.

Fernandes said the group remains optimistic about its ability to not only survive the effects of the pandemic but also soar to greater heights in the near future.

“Domestic air travel is likely to gradually resume in the third quarter of 2021 and international travel should start to take flight in 2022. We foresee a major resurgence in air travel on the horizon due to huge pent-up demand and the acceleration of vaccines, better testing, education, tracing and the push for digital health passports in all of our key markets.

“Our digital transformation strategy to become more than just an airline is gaining strong momentum across all of our non-airline businesses,” he said.

AirAsia’s share price fell 0.5 sen or 0.62% to 80 sen, giving the group a market capitalisation of RM3.12 billion.

MYEG, AirAsia, Boustead Plantations, Cahya Mata, MHB, CTOS Digital, IOI Corp, Inari, Tiong Nam and Scanwolf

KUALA LUMPUR (Aug 6): Based on corporate announcements and news flow today, companies that may be in focus on Monday (Aug 9) include: MyEG Services Bhd, AirAsia Group Bhd, Boustead Plantations Bhd, Cahya Mata Sarawak Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd, CTOS Digital Bhd, IOI Corp Bhd, Inari Amertron Bhd, Tiong Nam Logistics Holdings Bhd and Scanwolf Corp Bhd.

MyEG Services Bhd will be introducing decentralised finance (DeFi) products in Malaysia to provide cryptocurrency services to users of digital asset exchanges which are licensed as recognised market operators locally and abroad. MyEG said the service will enable holders of cryptocurrency to enter into smart contracts for the purposes of borrowing cryptocurrency or lending against their cryptocurrency assets.

AirAsia Group Bhd’s e-wallet unit BigPay has secured up to US$100 million in financing from South Korean conglomerate SK Group to further its mission to become the leading challenger bank in Southeast Asia. With the funds, the company intends to expand its product sets, along with growing the model to new markets, said BigPay co-founder and chief executive officer Salim Dhanani.

Sabah UMNO Youth chief Abdul Aziz Julkarnain has resigned as an independent and non-executive director of Boustead Plantations Bhd. Abdul Aziz, 43, has quit “to pursue other interests”, marking less than one year’s service since his appointment on Sept 1, 2020.

Meanwhile, Cahya Mata Sarawak Bhd’s (CMS) non-independent and non-executive director Datuk Isaac Lugun is retiring effective tomorrow.

The Malaysian Arbitral Tribunal has dismissed Kebabangan Petroleum Operating Co Sdn Bhd’s (KPOC) claim against Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) for alleged loss of revenue totalling RM28.03 million. However, in its final award, the Arbitral Tribunal ordered MHB to pay KPOC a higher sum of RM28.09 million as damages for the cost expenses incurred by KPOC and for the latter’s legal fees and expenses.

CTOS Digital Bhd has increased its stake in Thailand’s Business Online Public Company Ltd to 22.65% from 20% previously as part of its efforts to expand its foothold in the country’s business decision-making solutions market. The credit reporting agency said it has acquired 2.65% or 21.74 million shares via a direct business transfer on the Thailand stock exchange for a purchase consideration of THB208.7 million (RM26.8 million).

IOI Corp Bhd’s share price closed up one sen or 0.27% at its intraday high today of RM3.71 after erasing losses as the oil palm plantation company resumed its share buy-back and as higher crude palm oil prices supported industry sentiment. IOI Corp said it bought another 120,000 shares on the open market for RM442,813.96 at minimum and maximum prices of RM3.67 and RM3.70 a share respectively.

Inari Amertron Bhd sustained its strong performance in the fourth financial quarter ended June 30, 2021, as net profit more than doubled to RM88.67 million from RM35.47 million a year ago, on higher sales across all segments led by radio frequency business. Revenue rose 54.85% to RM361.32 million, from RM233.34 million. The group has proposed a fourth interim dividend of 2.5 sen per share, bringing the total for the full year to 11 sen per share — up from 4.4 sen per share in the previous year.

Tiong Nam Logistics Holdings Bhd’s subsidiary Tiong Nam Logistics Solutions Sdn Bhd (TNLS) is buying two plots of vacant land measuring 20 hectares and five hectares respectively in Johor Bahru from Senai Airport City Sdn Bhd for a collective RM136.38 million to construct a warehouse. Tiong Nam said TNLS today entered into two agreements with Senai Airport City for the purchase of the two plots of industrial freehold land within Senai Airport City’s Free Commercial Zone.

Scanwolf Corp Bhd said today its rights issue of Irredeemable Convertible Unsecured Loan Stocks (ICULS) with warrants at 10 sen per rights share was oversubscribed by 101.85% and has raised RM10.5 million. The plastic extrusions manufacturer and property developer the ICULS and warrants are expected to be listed and quoted on the Main Market of Bursa Securities on Aug 9. According to the group, subscribers are also entitled to one warrant for every two ICULS subscribed.

Insider Moves: Bermaz Auto Bhd, IJM Corp Bhd, IHH Healthcare Bhd, YBS International Bhd, KPJ Healthcare Bhd, Datasonic Bhd

Notable filings

FOR the week of Aug 9 to 13, notable changes in shareholding at Bursa Malaysia-listed companies included those at Bermaz Auto Bhd, where the Employees Provident Fund (EPF) sold 2.04 million shares to trim its stake to 20.15% or 234.06 million shares. In early June, EPF held 243.25 million shares or 20.94% of the company.

Bermaz is involved in the distribution of Mazda vehicles and parts in Malaysia and the Philippines, and recently took over the distributorship of Peugeot and Kia vehicles. Its share price closed at RM1.53 last Tuesday, having gained almost 16% since end-May. This gives the company a market value of RM1.78 billion.

Fortuna Gembira Enterpris Sdn Bhd, a unit of construction company Sunway Bhd, emerged as a substantial shareholder of IJM Corp Bhd during the week in review. Earlier this year, Fortuna Gembira acquired 180.25 million shares or 4.95% of IJM Corp amid talk of a corporate exercise between the two listed entities. Sunway’s stake in IJM Corp rose to 5.01% after the latter accumulated 52.54 million treasury shares, following share buybacks from February to Aug 9.

IJM Corp recently hived off a 56.2% stake in IJM Plantations Bhd to Kuala Lumpur Kepong Bhd for RM1.53 billion cash, and has set aside RM800 million for capital management activities, including share buybacks. Last Tuesday, its share price closed at RM1.80, which translates into a market capitalisation of RM6.56 billion.

EPF has been paring down its stake in healthcare provider IHH Healthcare Bhd. It disposed of 5.33 million shares during the week in review to reduce its shareholding to 9.22% or 809.89 million shares. At end-May, the provident fund held 856.87 million shares or 9.76% of IHH.

IHH’s share price had gained more than 13% over the past six months to close at RM5.78 last Tuesday. As a result, the company’s market capitalisation stood at RM50.74 billion.

Datuk Pahamin Ab Rajab has sold 1.07 million shares in YBS International Bhd to reduce his stake to 4.06% or 10 million shares. Pahamin of AirAsia Bhd fame is chairman of the precision engineering outfit.

Substantial shareholder Musharaka Tech Venture Sdn Bhd has also been disposing of its shares in YBS. The former still holds 21.12 million shares or an 8.57% stake in the company, but had 24.5 million shares or 10% equity interest in April.

YBS’ share price has appreciated by almost 39% since end-June. At last Tuesday’s closing price of 43 sen, the company had a market value of RM106 million.

Notable movements

KPJ Healthcare Bhd’s share price hit a multi-year high of RM1.13 on Aug 11. At last Tuesday’s closing price of RM1.09, the company was valued at RM4.85 billion. The counter has gained 18.48% since end-June.

EPF has been selling on strength. During the week in review, it sold 10.22 million KPJ shares, cutting its equity interest to 12.92% or 575.12 million shares. As EPF had 612.12 million shares or 13.76% in KPJ at end-May, it means the provident fund had sold 55 million shares of the healthcare service provider over a span of three months.

There has been talk of KPJ being privatised by parent Johor Corp Bhd, in partnership with private equity firm TPG Capital. Certain quarters say the plan is off the table, but others are adamant that it is still on the cards.

KPJ operates 28 hospitals in Malaysia, two in Indonesia, one in Bangladesh and one in Bangkok, Thailand. It also runs four retirement and aged care facilities (in Kuala Lumpur, Pahang, Sarawak and Brisbane, Australia).

Datasonic Bhd’s share price hit a multi-year low of 44 sen last Tuesday, giving the company a market capitalisation of RM1.28 billion. The stock had fallen more than 28% since end-April.

Minister of Finance Inc-owned Urusharta Jamaah Sdn Bhd has been nibbling at the counter and picked up half a million Datasonic shares during the week in review to raise its shareholding to 8.38% or 241.19 million shares. In late April, Urusharta Jamaah held 235.76 million shares or 8.17% of the company.