AAV approves restructuring plan Plan to raise capital, issue bonds gets nod

Asia's Tech News Daily

The board of Asia Aviation (AAV), the largest shareholder of budget carrier Thai AirAsia (TAA), has given the nod to the company's restructuring plan, including increasing its registered capital and issuing convertible bonds, which could raise 14 billion baht meant to purchase the remaining shares of TAA, repay loans and boost its liquidity.

Tassapon Bijleveld, AAV and TAA executive chairman, said the capital raising and revenue management strategy are needed to ready the company for the return of post-pandemic travel, especially operations for the country’s reopening.

The restructuring plan includes an increase in registered capital and offer newly-issued ordinary shares in a private placement worth 8.8 billion baht.

Of that amount, 7.8 billion comes from AirAsia Aviation, a subsidiary of AirAsia Group Berhad, that holds shares in the aviation business under the AirAsia brand including TAA, and 1 billion baht from individual investors.

AAV will issue and offer the convertible bonds with a total value of 2.2 billion baht with a maturity period of not more than two years to two investors, including Bangkok Bank Plc at 1.2 billion baht and North Haven Thai Private Equity, L.P, a private fund, at 1 billion baht.

Lastly, AAV plans to increase registered capital and offer the newly-issued shares to existing shareholders at 3 billion baht from a rights offering.

AAV’s board approved the plan at its board meeting on Oct 19, according to the company’s statement sent to the Stock Exchange of Thailand.

This is a revised plan from the one that was earlier approved by the board on April 26.

With 14 billion baht raised, 3.9 billion will be used to repay loans to financial institutions with the repayment expected by the end of this year.

Some 3.9 billion baht will be used to buy all the remaining shares of TAA, which is 30.8% of the total shares.

“Once the restructuring is complete in the first quarter of 2022, AAV will hold all shares in TAA,” Mr Tassapon said.

The remaining capital will be used as working capital and the company might increase capital to support TAA’s operations in the future, which is expected to be carried out by the second quarter of next year.

He said TAA expects to fully operate its domestic operation by next January and resume key international routes in the near future, which complies with the government’s reopening plan.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Shippers predict robust export growth

A group of Thai shippers believe the country's exports may grow by up to 8% next year, driven by an economic recovery in partner trading countries. But it warned of ... Read more »

Fetco eyes foreign inflow of B100bn

The Thai stock market will see at least 100 billion baht of foreign inflows next year if the government succeeds in preventing the emergence of a new outbreak, according to ... Read more »

Land bridge mapped out to public Project a Malacca Strait alternative

Matters related to the Southern Land Bridge project that aims to facilitate cargo transport between the Gulf of Thailand and the Andaman Sea were discussed during a public forum in ... Read more »

Cops told to brush up on security laws

Police superintendents in Bangkok are being told to pay more attention to and improve their understanding of law enforcement in security cases involving Section 112 and 116 of the Criminal ... Read more »

Cramer says stocks' recent rally shows need for investors to be patient, not fearful of omicron

CNBC's Jim Cramer on Tuesday delivered a lesson to investors in light of the stock market's recent move higher after a rough patch filled with Covid omicron worries. The “Mad ... Read more »

Outlook dims on Kai Tak's waterfront land as Hong Kong's Northern Metropolis plan and land conversion add to city's supply glut

A distressed sale last week at Hong Kong’s former Kai Tak airport site has clouded the outlook of the city’s property market, as an expected glut of residential land weighs ... Read more »

Time for Asean films to shine The 7th Bangkok ASEAN Film Festival returns with a strong programme of films from around the region

The Edge Of Daybreak. Photos © Bangkok Asean Film Festival The pandemic notwithstanding, it has been a stimulating year for Southeast Asian cinema. Reflective, heartfelt and oddball new titles from ... Read more »

Initiative to develop EV ecosystem

An electric vehicle charges at a charging station operated by the Metropolitan Electricity Authority. Patipat Janthong The state-run Metropolitan Electricity Authority (MEA) plans to provide discounts on the rate of ... Read more »

Crypto investors oppose price controls Penalties urged for manipulators

Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple and Litecoin are placed on a PC motherboard in this illustration. REUTERS The crypto community disagrees with the Securities and Exchange Commission's (SEC) ... Read more »

Call for a careful tourist reopening Operators fear another lockdown

Tourists have their documents checked by workers wearing PPE suits at Suvarnabhumi airport, as detection of the Omicron variant in Thailand raised concerns among operators.  Somchai Poomlard The country's reopening ... Read more »

Fewer households below poverty line in 2020, despite corona

In 2020, the percentage of households with an income below the low-income threshold has fallen further, reports the Central Bureau of Statistics. Last year this concerned 6.8 percent of households, ... Read more »

City mulls fares on Green Line extension

City Hall is considering three fare structures for electric train rides along the Green Line extension, the revenue from which it plans to use to pay off its debts to ... Read more »

Two-ballot laws enter final stage Parliament expects submissions in weeks

The amended versions of two organic laws essential for implementing the new election system are expected to enter parliament early next month, said Deputy Prime Minister Wissanu Krea-ngam. Emerging from ... Read more »

BoT jittery over use of digital assets to make payments

A customer pays for a meal at Lim Lao Ngow, a noodle shop in Siam Square One, with Bitcoin. PAWAT LAOPAISARNTAKSIN The Bank of Thailand is concerned about the use of ... Read more »

Air pollution at levels harmful to health

Bangkok is shrouded in haze as two districts — Nong Khaem and Khlong Sam Wa — record high PM2.5 levels. Authorities warned residents in areas with high dust levels to ... Read more »

Union slams plan to shut old station

State Railway Workers’ Union of Thailand (SRUT) members on Tuesday pray before attending a public forum to discuss the impact of the feared closure of Hua Lamphong Station which is ... Read more »

PM firm over protest group's treatment

A young woman speaks out against police arresting 37 fellow protesters during a rally on Monday outside Government House against a plan to build an industrial estate in Chana district ... Read more »

Lockdown 'unlikely', insists PM Business community breathes sigh of relief

New arrivals at Suvarnabhumi airport, the country’s gateway, are directed to a health screening area by officers on Tuesday. The country reported its first case of the new Covid-19 variant ... Read more »

Domino's, Papa John's lead way in boosting US pizza sales

Domino’s is the best-selling pizza brand in the US. US pizza sales were up 6 percent in 2020, to $27.5 billion, but much of that growth was concentrated among Domino’s ... Read more »

Ports of Auckland appoints Roger Gray as new chief executive

Ports of Auckland has appointed Roger Gray as its new chief executive in a year of top table changes for the embattled Auckland Council-owned port. Gray will replace former boss ... Read more »

Omicron significantly reduces Covid antibody protection in small study of Pfizer vaccine recipients

Nurse Mary Ezzat administers a Pfizer COVID-19 booster shot to Jessica M. at UCI Medical Center in Orange, CA, on Thursday, August 19, 2021.Jeff Gritchen | MediaNews Group | Orange ... Read more »

New Balance inks 3-year apparel deal with Netball Australia

The Australian Diamonds would start wearing New Balance apparel in next month’s Quad Series . Netball Australia has signed a three-year apparel partnership with New Balance that would see the ... Read more »

Marriott hopes to lure younger and wealthier travelers by launching NFT collection

The project makes Marriott one of the first hospitality brands to participate in the metaverse.  Marriott International has partnered with three digital artists, TXREK, JVY, and Erick Nicolay, to launch ... Read more »

Israeli subsidiary Just Eat Takeaway fires courier who brought in union

Israeli meal delivery service 10Bis has fired the chairman of its staff representation. This Adam Shtainer had recruited members for a union among the workforce. 10Bis is a daughter of ... Read more »

Stock blog: joy on Wall Street with Nasdaq as the driver

The Amsterdam stock exchange posted its largest daily profit in more than a year on Tuesday with a return to well above 800 points. In particular, the great enthusiasm among ... Read more »

Nasdaq ends 3% higher as US stocks rally again

Investors cheer early signs that the Omicron coronavirus variant may be less severe than earlier rounds. NEW YORK (AFP) – Wall Street stocks rallied for a second straight session on ... Read more »

‘ABN Amro sells head office at Zuidas'

The deal is said to be worth just under €750 million, sources close to the negotiations say. This is reported by the Real Estate Market platform. It is not yet ... Read more »

Wall Street closes sharply higher as Omikron worries ease

The stock exchanges in New York closed on Tuesday with significant gains. Investors are less concerned about the economic impact of the Omikron variant of the coronavirus with reports that ... Read more »

Retail icon Mickey Drexler on breaking up department stores: "I don't get it."

Mickey Drexler has led some big retail brands, and he sees challenges ahead for the sector even as in-store shopping is picking up again. But he doesn't understand how the ... Read more »

Stitch Fix shares crater as retailer swings to loss, cuts full-year forecast

Read more »

Paint on A350 wings becomes a headache file for Airbus

Airbus has a growing problem with the exterior of its A350 aircraft. Airlines complain that paint is peeling off the wings. There would also be problems with the lightning derivation. ... Read more »

Swedish Prime Minister Magdalena Andersson resigns from IMF position

Photo: ANP Magdalena Andersson will resign from her position as chair of the main steering committee of the International Monetary Fund (IMF) before the end of the year. The Swedish ... Read more »

Export of Russian software up by almost 20% yoy in 2021, says Deputy Prime Minister

Packages of measures aimed at developing the industry are being gradually implemented, Dmitry Chernyshenko said Read more »

Survivor Herbert Diess stays on after another power struggle at Volkswagen

If it wasn’t conscious, it was at least symbolic. On Tuesday afternoon, Herbert Diess, CEO of the Volkswagen car group, posted a selfie on LinkedIn from a meeting room. He ... Read more »

Premier League may partner with crypto platform to sell NFTs

Several Premier League clubs already have their own sponsorship deals with crypto platforms. The Premier League is considering is about partnering with a cryptocurrency platform to sell NFTs, in a ... Read more »

Small businesses regain some lost ground as shoppers yearn for 'something a little bit different'

Although small businesses are seeing renewed strength this holiday season, many are being met with supply chain challenges and hiring struggles. Read more »

Berlin says US will close gas pipeline if Russia attacks Ukraine

Photo: ANP Germany to close controversial Nord Stream 2 gas pipeline after Russia invades Ukraine. That is what they have agreed with the Americans, US officials have told members of ... Read more »

Stock blog: buying hunger for tech funds on sunny Wall Street

The Amsterdam stock exchange posted its largest daily profit in more than a year on Tuesday with a return to well above 800 points. In particular, the great enthusiasm among ... Read more »

Space infrastructure company Loft Orbital raises $140 million from BlackRock and others

The company's YAM-2 spacecraft during integration for launch.Loft Orbital Loft Orbital, a space infrastructure start-up, raised $140 million in a new round of funding was led by investment behemoth BlackRock. ... Read more »

US wants to do more to fight bitcoin money laundering

Photo: ANP US President Joe Biden says his administration wants to do more to fight, among other things, the laundering of criminal money with bitcoins worldwide. A newly formed unit ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic