AirAsia: MAS shares purchase claim not true

Air Asia Bhd group CEO Tony Fernandes has denied reports that he will be buying the largest shareholder stake in Malaysia Airlines (MAS).

In a statement issued this afternoon, Fernandes and his deputy Kamarudin Meranun said they wish to clarify that the claim as reported over the last two days, is not true.

“As the major shareholders of AirAsia Berhad and AirAsia X Sdn Bhd, we are committed to increasing shareholder value in both our core investments by continuously exploring various opportunities to enhance our franchise,” they said.

According to a Star report quoting sources, the alleged deal was struck last week after negotiations over the past year.

Talks over the matter became urgent after MAS' poor showing in the last two quarters.

Under the purported agreement, Fernandes was to get 20 percent of MAS equity, with some sources saying it had already received the government's approval and could be inked by Monday.

Industry players, said the Star, expressed surprise at the deal because of past animosity between the management of the two airlines.

Those who were aware of the negotiations were also surprised at the speed at which it was concluded.

Earlier today, Transport Minister Kong Cho Ha described the purported deal as a good development for the local airline industry.

Fernandes as shareholder of MAS would not only help pull it out of a business slump but also enhance cooperation in the airline industry, said Kong.

"Both companies can cooperate on which routes to operate in order to enhance operating costs," Bernama reported Kong as saying in Kota Kinabalu today.

It was rumoured that Fernandes was going to ink the deal some time next week.

Reports incorrect

Meanwhile Khazanah Nasional Bhd also denied media reports that AirAsia Bhd's Tony Fernandes will emerge as the single largest shareholder with a 20 per cent stake in Malaysian Airline System Bhd (MAS) in a share swap deal.

"These reports are incorrect," the government's investment arm said in a brief statement in Kuala Lumpur today.

Both Fernandes and Kamarudin Meranum, the two major shareholders of AirAsia and AirAsia X Sdn Bhd, said in separate statements that there was no truth to the media reports.

The reports said the move was to bring in Fernandes and turn around the financially-troubled national carrier.

Khazanah said: "The aviation sector is a strategic sector to the economy and MAS remains a core holding in Khazanah Nasional's portfolio. Khazanah will continue to maintain its position as the single largest shareholder in MAS."

Khazanah holds about a 70 per cent stake in MAS.

"As an active strategic investor, Khazanah constantly reviews ways to improve the performance of its portfolio companies and concurrently the competitiveness of key strategic sectors of the economy," it said.

Khazanah, which also holds equity in AirAsia's major shareholder, Tune Air Sdn Bhd, said further announcements would be made at the appropriate time with regards to Khazanah's position in MAS' ongoing transformation plan. - Malaysiakini