Indonesia AirAsia is looking at a backdoor listing via IDX-listed logistics and warehousing firm Rimau Multi Putra Pratama (RMPP), the parent company AirAsia Berhad said in a statement.
The deal will see AirAsia injecting 57.25 per cent of its Indonesia unit into RMPP, making the company the new holding of Indonesia AirAsia. In return, AirAsia via its units AirAsia Investment Ltd (AAIL) and Fersindo Nusaperkasa (FNP) will own up to 48 per cent and 49.96 per cent in RMPP, respectively.
“On or about the allotment date, each of FNP and AAIL will subscribe for the remaining unsubscribed rights shares offered in the Rights Issue after allotment for an amount up to 10.4 trillion ordinary shares satisfied by non-cash consideration, by way of transferring the IAA Perpetual Securities owned by FNP and AAIL of Rp 2.6 trillion in nominal value to RMPP, which accordingly FNP and AAIL together will own up to 97.96% equity interests in RMPP,” the filing stated.
Transaction is expected to close in the fourth quarter of 2017.
The board has yet to provide explanation as to why it is opting for a backdoor listing instead of an IPO.
In a separate announcement, AirAsia reveals plans to consolidate its various regional affiliates under one holding company. It proposes a share exchange and transfer of listing with newly created AirAsia Group Bhd, or Newco. Under the reorganisation, the investment holding function and the Malaysian airline business will be separated. Newco will become the investment holding vehicle and take on AAB’s listing.
AAB will retain the Malaysian airline business and become Newco’s wholly owned unit, after earlier reporting record-high quarterly revenues and a plan to expand its fleet by over 20 percent in second half.
Earlier this month, AirAsia Indonesia named actress Raline Shah as an independent commissioner to tap on the millennial market ahead of its listing.