New investor agrees to inject $100m into AirAsia’s Thai unit as part of restructuring

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An unnamed investor has agreed to inject up to 3.15 billion baht ($100.41 million) into the Thai unit of AirAsia Group Bhd as part of a restructuring plan proposed by parent company Asia Aviation PCL , a Tuesday filing said.

The investor will provide the amount via an interest-free convertible loan or bond, an Asia Aviation filing posted by AirAsia on the Kuala Lumpur Stock Exchange showed.

Asia Aviation said it had not been able to mitigate the effects of the COVID-19 pandemic, and did not consider the situation to be returning to normal.

In order to continue its operation “steadily and effectively”, it had contacted an investor at the beginning of the year to seek support in increasing the company’s short-, medium- and long-term liquidity, the filing said.

Thai AirAsia, the main operating subsidiary of Asia Aviation, is 45% owned by Malaysian budget airline AirAsia Group.

Once Thai AirAsia has received regulatory approval to offer shares in an initial public offering (IPO), the investor expects to convert the loan or bond into ordinary shares at a rate of 20.3925 baht per share, the filing said, giving them a direct stake in the airline.

The investor, which does not currently have a connection to Asia Aviation or Thai AirAsia, is expected to complete due diligence on the business in May, with the transaction completed in June. Preparation for the IPO is likely to take more than seven months.

Asia Aviation also suggested liquidating itself and allocating its assets to its shareholders, giving them a direct shareholding in Thai AirAsia.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.