Friday 3 August 2012

News Highlights - Axiata Group, AirAsia


Axiata Group (RM5.90/share)
Axita plans airtime sukuk
Malaysia’s Axiata Group Bhd joins a growing number of companies using mobilephone airtime to back Islamic transactions as Asian subscribers are forecast to dominate the global market in three years. The nation’s biggest telecommunications operator, with businesses in India, Indonesia and Sri Lanka, set up its first multicurrency sukuk programme worth US$1.5bil backed by telephone minutes, according to a July 19 stock exchange filing. More Islamic bond issuers are using airtime as an asset class due to the limited pool of commodities such as land and property – The Star

Air Asia Berhad (RM3.72/share)
AirAsia assures Indonesia Batavia Air buy will follow rules
The Indonesian government has been assured that the acquisition of the domestic airline, Batavia Air, by low-cost-carrier Indonesia AirAsia (IAA) will comply with Indonesian rules. PT Fersindo Nusaperkasa, owner of a 51% stake in Indonesia AirAsia gave its commitment on the matter. Malaysian-based AirAsia Bhd controls the remaining 49% stake in Indonesia AirAsia. Under Indonesian rules, foreign ownership of airlines is capped at 49%, leaving the remaining 51% of shares in the hands of Indonesians. Business Competition Supervisory Commission said they would look into the composition of ownership in the parent company of IAA, to make sure the Malaysian company does not control too much share of the domestic market. The commission would annul the acquisition of Batavia Air by IAA if it had the potential to stop other carriers from growing in the aviation industry.IAA has been reported as the strongest international player in 2011 by carrying 3.38 million passengers or 41.58% of the international market, while it carried only 181,200 domestic passengers accounting for three 3% of the domestic share. - Bernama

Source: AmeSecurities 

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