AirAsia shares dive after abortive MAS tie-up
People walk past an AirAsia billboard in Kuala Lumpur August 7, 2009. — Reuters picKUALA LUMPUR, May 3 — Shares of AirAsia Bhd declined as much as 3.9 per cent today after it called off the US$364 million (RM1.1 billion) share swap deal inked with Malaysian Airline System Bhd (MAS) in August last year.
MAS saw its shares gain 0.82 per cent, outperforming the Malaysian benchmark stock index that shed 0.09 per cent as at 9.06am.
As part of the reversal of the deal, AirAsia’s chief and founder Tan Sri Tony Fernandes and deputy Datuk Kamarudin Meranun resigned from MAS’ board, with MAS director Datuk Mohamed Azman Yahya following suit from AirAsia’s board.
But both airlines said they will continue to collaborate with signing of agreements for joint maintenance services and a special purpose vehicle to extract procurement synergies such as fuel oil, aircraft components and parts.
Reuters, citing two sources, reported on Tuesday that shares of MAS will be suspended from trading yesterday amid speculation that the national carrier’s share swap deal with AirAsia will be cancelled. — Reuters
