BANGKOK, 21 October 2021: Asia Aviation Plc, the major shareholder of Thai AirAsia, has unveiled a new shareholder restructuring plan that will inject THB14,000 million in capital secured by issuing convertible bonds and new ordinary shares to both new and existing shareholders.
Through this process, AAV aims to hold all shares in Thai AirAsia while also enhancing liquidity for the airline.
Asia Aviation Plc and Thai AirAsia executive chairman Tassapon Bijleveld, explained: “As we gear up and ready ourselves for travel resumption post-Covid, necessary changes are required for our capital raising and revenue management strategy.
“AAV has formulated this new restructuring plan to provide the company with both working capital and the liquidity needed to sustain operations in line with Thailand’s plans for reopening. Reconsidering previous operational and capital adjustments and entering into negotiations with new investors, shareholders and creditors of both AAV and TAA, the new plan is expected to be implemented within the first quarter of 2022.
AAV will increase its registered capital and offer newly issued ordinary shares on a private placement, totalling approximately THB 8,800 million. The revised shareholder restructuring plan will also offer AirAsia Aviation Limited (“AAA”) additional investment of THB7,800 million and individual investors up to THB1,000 million by allocating shares not exceeding of 5,028,571,429 shares (with a par value of THB 0.10 per share).
In addition, AAV will issue and offer the convertible bonds in an amount THB2,200 million with a maturity period of not more than two years to two key investors, comprising of Bangkok Bank Plc in an amount of THB1,200 million and North Haven Thai Private Equity LP in an amount of THB1,000 million. The conversion ratio of 0.00175 convertible bonds can be converted into one ordinary share and can be converted to new shares in the maximum amount of but not exceeding 1,257,142,857 shares (with a par value of THB 0.10 per share).
AAV will increase its registered capital and offer the newly-issued shares to existing shareholders of the company proportionate to their respective shareholdings (Rights Offering), in the amount of not exceeding 1,714,285,714 shares with the ratio of 5.7625 existing ordinary share to one ordinary share at the offering price of THB1.75 per share, totalling approximately THB3,000 million.
Once the restructuring is completed during the first quarter of 2022, AAV will hold all shares in TAA using capital raised through fundraising.
Tassapon noted tourism and aviation were recovering and that the airline expected to ‘return to 100% of our normal domestic operations by January 2022. We are also looking forward to recommencing our key international routes shortly in light of the Thai government’s country reopening plan.”