With the acquisition of AirAsia by AirAsia X the question remains on how this will affect the shareholders, in a letter published by the Group CEO Tan Sri Tony Fernandes, said the short answer is that the proposed exercise will unlock immense value from both AirAsia X and AirAsia Aviation, which is anticipated to uplift shareholding value
significantly.
Tony said at the moment, both AirAsia X and AirAsia Aviation are undervalued in the market, he adds as shareholders, they will now have access to a larger airline group including a low-cost carrier group with a time-tested business model that is profitable and resilient. As discussed earlier in this letter, the synergies and efficiencies will see the post-exercise enlarged group thrive and flourish.
Following the proposed transaction, AirAsia Group will issue free warrants to existing shareholders, as gratitude for their continued support it said. Also with the free warrants given exclusively, shareholder can gain the opportunity to increase equity participation and be a part of the future growth.
