AirAsia Seeks Back-Door Listing on Indonesia Stock Exchange
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The deal, which is expected to be completed in the fourth quarter of 2017, implies RMPP will become the new holding company of Indonesia AirAsia.
Currently, AirAsia Bhd controls a 49 percent stake in Indonesia AirAsia as foreign ownership in Indonesian airlines is capped at a maximum of 49 percent. The remaining shares in Indonesia AirAsia are controlled by Fersindo Nusaperkasa. The debt-and-share-swap deal implies Fersindo Nusaperkasa also obtains a stake in RMPP. After completion of the deal AirAsia and Fersindo Nusaperkasa will own up to 48 percent and 49.96 percent, respectively, in RMPP.
Several weeks ago Tony Fernandes, Chief Executive of the Airasia Group, still confirmed the Malaysian group’s plans to conduct an initial public offering (IPO) for its Indonesia AirAsia unit on the Indonesia Stock Exchange before the end of 2017. Therefore, the news about the back-door listing was a surprise.
Previously, Indonesia AirAsia had already expressed its desire for an IPO in 2016 as it seeks fresh funds for further business expansion (specifically for the purchase of new airplanes and opening of new flight routes). However, domestic and global uncertainty made the airline decide to postpone the corporate move.
Questions & Answers
Q.When is the back-door listing deal expected to be finished?
When is the back-door listing deal expected to be finished?
The deal, which will make RMPP the new holding company for Indonesia AirAsia, is expected to be completed in the fourth quarter of 2017. This will transfer control and ownership stakes to RMPP.
Q.Why did Indonesia AirAsia previously want to pursue an initial public offering?
Why did Indonesia AirAsia previously want to pursue an initial public offering?
Indonesia AirAsia previously sought an IPO to raise fresh funds for business expansion. These funds were intended for buying new airplanes and opening new flight routes, but the plan was postponed due to market uncertainty.
Q.What stakes will AirAsia and Fersindo Nusaperkasa hold in RMPP after the deal is completed?
What stakes will AirAsia and Fersindo Nusaperkasa hold in RMPP after the deal is completed?
After the deal is finalised, AirAsia will own up to 48 percent of RMPP, while Fersindo Nusaperkasa will hold up to 49.96 percent. RMPP will become the new holding company for Indonesia AirAsia.
Q.Why was the news of a back-door listing surprising to readers?
Why was the news of a back-door listing surprising to readers?
The news of a back-door listing was surprising because Tony Fernandes, Chief Executive of the Airasia Group, had recently confirmed plans for an initial public offering for Indonesia AirAsia on the stock exchange before the end of 2017.
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