Article Appearing In The Edge (February 5 - February 11, 2007 Issue) Entitled: "AirAsia Mulls Fund-raising Exercise?"
|Reply to query|
|Reply to Bursa Malaysia's Query Letter - Reference ID||NM-070205-43461|
|Subject||ARTICLE APPEARING IN THE EDGE (FEBRUARY 5 - FEBRUARY 11, 2007 ISSUE) ENTITLED: "AIRASIA MULLS FUND-RAISING EXERCISE?"|
Contents :In response to Bursa’s letter (Ref. NM-070205-43461) dated 5th February 2007, AirAsia Berhad ("AirAsia" or the "Company") wish to advise that the Company has no immediate plan to undertake a rights issue of shares as mentioned in the said article.
We have in the recent past received a number of unsolicited propositions from local and foreign investment bankers on fund-raising possibilities ranging from placement of hybrid instruments and/or equity shares to new investors, to rights issue of shares to existing shareholders. These are aimed at addressing any existing and potential concerns of investors and lenders over the Company’s current and future gearing ratio - and not a means to pay for the purchase of aircraft that we have on order.
The introduction of new Airbus A320s to our fleet has brought about tremendous operational and financial benefits to the Company. These benefits have translated into healthy net cash inflows to the Company that also help part finance later aircraft acquisitions. Thus, under the present set of business and operating conditions, there is no necessity for the Company to undertake such an exercise. However, prudence dictates that the Company retain the flexibility to raise funds in one form or another should such a need arise anytime in the future.
This announcement is dated 6 February 2007.
Query Letter Contents :
We refer to the above news article appearing in The Edge, page 1, on Monday, 5
February 2007, a copy of which is enclosed for your reference.
In accordance with the Securities Exchange's Corporate Disclosure Policy, you
are requested to furnish the Securities Exchange with an announcement for
public release confirming or denying the above reported article after due and
diligent enquiry with all the directors, major shareholders and all such
persons reasonably familiar with the matter about which the disclosure is to be
made in this respect. In the event you deny the above reported article, you are
required to set forth facts sufficient to clarify any misleading aspects of the
same. In the event you confirm the above reported article, you are required to
set forth facts sufficient to support the same.
Please furnish the Securities Exchange with your reply within one (1) market
day from the date hereof.
TAN YEW ENG
Listing Division, Group Regulations
c.c:- Encik Chung Tin Fah, Securities Commission (via fax)
|Company Name||AIRASIA BERHAD|
|Date Announced||6 Feb 2007|