AIRASIA AND AXIATA BUY FROM STARBIZ

There will be no write-offs on the amount owed by Thai AirAsia (TAA) and Indonesia AirAsia (IAA) to parent AirAsia
Bhd (AIRA MK, Buy, TP: RM1.90), said chief executive officer Datuk Seri Tony Fernandes. “A draft agreement is being
prepared to ratify and seek approval from shareholders at an EGM to be called on Aug 3 for the past and continuing financial
assistance to the two units,” Fernandes said. This is necessary since the amount owed by the two 49% owned associates
exceeds the 5% threshold of AirAsia’s shareholder’s funds which stand at RM1.81bn. As at Dec 31, 2008, net borrowings due
to AirAsia are RM603m. Fernandes said the two units were now cash-flow positive and that they had been paying back some
of their dues, but noted that it would take two to three years for them to fully pay their dues to AirAsia. (Starbiz)
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Axiata Group Bhd (AXIATA MK, Buy, TP: RM3.12) continues to look at ways to expand its business but there is nothing
on the table with regard to the purchase of assets owned by Millicom International Cellular SA in Asia. “It does not
make sense for two parties to combine in a very competitive marketplace. Internally, we look at all sorts of transactions but
there is nothing going on,” said executive director and chief financial officer Datuk Yusof Annuar Yaacob. Even if Axiata were to
consider buying the stakes, the issue of funding would arise, as Yusof puts it: “If it makes sense, do we have the money to buy
the assets?” (Starbiz