AirAsia makes Tune Money its wholly owned unit

1 min readUpdated May 28, 2025Oct 8, 20157:32 AM

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AirAsia Bhd is acquiring the remaining 60% interest in financial services provider Tune Money Sdn Bhd as well as its entire issued redeemable preference shares (RPS) for RM6.36mil in cash.

In a filing with Bursa Malaysia, AirAsia said the payment of about RM0.038 per ordinary 10 sen share and RM150,000 per RPS to vendor Tune Money International Sdn Bhd (TMI) would be financed by the company’s internally generated funds.

TMI and AirAsia share two common shareholders and directors, namely Tan Sri Tony Fernandes and Datuk Kamarudin Meranun.

AirAsia said Bank Negara had stated on Sept 30 that it had no objections to the transaction.

On the rationale for the acquisition, it said this would give additional benefits that could only be realised through full ownership and control of Tune Money.

“Full ownership would allow greater control and facilitate accelerated decision-making with regards to AirAsia priority items that would help support the company’s business plan and commercial objectives.

“Additionally, once AirAsia increases its stake in Tune Money to above 50%, Tune Money will no longer be classified as an associate and AirAsia will be able to incorporate Tune Money’s contributions to company revenue, which would improve AirAsia’s top line as well as ancillary revenue,” the low-cost carrier said.

These, it added, were on top of the existing benefits that AirAsia enjoyed through its ownership of a stake in Tune Money, such as lower merchant discount rate, increasing ancillary spend by incentivising guests with meal and baggage discounts, and accelerating deployment of the BIG Loyalty programme by allowing points accrual from purchases outside the AirAsia ecosystem.

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Questions & Answers

What is the total cash value AirAsia is paying for the remaining 60% interest in Tune Money and its redeemable preference shares?

AirAsia is paying RM6.36 million in cash for the remaining 60% interest in Tune Money and its entire issued redeemable preference shares. This payment includes approximately RM0.038 per ordinary 10 sen share and RM150,000 per RPS.

Who are the common shareholders and directors shared between AirAsia and Tune Money International Sdn Bhd?

Tan Sri Tony Fernandes and Datuk Kamarudin Meranun are the two common shareholders and directors shared by AirAsia and the vendor, Tune Money International Sdn Bhd (TMI). They hold positions in both companies.

What are the stated benefits of AirAsia gaining full ownership and control over Tune Money?

Full ownership will allow greater control and accelerated decision-making regarding AirAsia's priorities, supporting its business plan. It also means Tune Money's contributions can be incorporated into AirAsia's revenue, improving its top line and ancillary revenue.

How will the acquisition affect how Tune Money's financial contributions are reported for AirAsia?

Once AirAsia increases its stake to above 50%, Tune Money will no longer be classified as an associate. AirAsia will then be able to incorporate Tune Money's financial contributions directly into its company revenue figures.

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