LEITHEN FRANCIS / SINGAPORE
European and Islamic investors have acquired a 26% stake in fast-growing Malaysian low-fare carrier AirAsia in a deal that values the business at $100 million.
The Islamic Development Bank (IDB) Infrastructure Fund, Crescent Venture Partners and Deucalion Capital II are investing $26 million for 10%, 9% and 7%, respectively.
AirAsia's chief executive, Tony Fernandes, and other stakeholders in parent company Tune Air have had their combined holding reduced to 73.41%. The remaining shares in AirAsia are held by Malaysian company Mofaz Air.
"The capital will be used to enhance AirAsia's financial base and to facilitate expansion plans, including the recent purchase of four Boeing aircraft," the airline says.
The IDB Infrastructure Fund is a global private equity fund based in Jeddah, Saudi Arabia. It is backed by Bahrain, Brunei, the Saudi Arabian government's Saudi Pension Fund and a Malaysian consortium led by Lembaga Tabung Haji, a government-owned savings and investment company.
Crescent Venture Partners is an investment firm based in Amman, Jordan, backed by investors and financial institutions from Kuwait, Saudi Arabia and the United Arab Emirates. Deucalion Capital II is a Frankfurt-based private equity fund that focuses on aviation.
AirAsia is expanding its fleet to 18 by purchasing four Boeing 737-300s and leasing another seven.
Source: Flight International
