Malaysias AirAsia gains shareholder approval for US241 million rights issue

KUALA LUMPUR : Malaysian budget airline AirAsia Group Bhd has won shareholder approval for a rights issue to raise 1 billion ringgit (US$240.88 million), it said in a statement on Thursday.

Hit by the coronavirus-driven slump in global travel, the airline in July proposed to raise the funds through a rights issue to weather the financial impact. AirAsia has been looking to raise up to 2.5 billion ringgit.

The airline said in stock exchange filing that it secured nearly 100per cent of votes for its proposed renounceable rights issue of up to 1.024 billion ringgit in nominal value of seven-year redeemable convertible unsecured Islamic debt securities.

Last month,it also received approval for a loan facility of up to 500 million ringgit, 80per cent of which is guaranteed by the government and will be earmarked for working capital.

(US$1 = 4.1515 ringgit)

(Reporting by Liz Lee; Editing by David Goodman)

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