BANGKOK, Oct 20 (Reuters) - Thai AirAsia's parent firm, Asia
Aviation Pcl (AAV) on Wednesday said it is seeking to
raise 14 billion baht ($419.29 million) as part of restructuring
to prepare for a regional travel restart.
"As we gear up and ready ourselves for travel resumption
post-COVID, necessary changes are required for our capital
raising and revenue management strategy," AAV Executive Chairman
Tassapon Bijleveld said on Wednesday.
Shares of AAV, which owns 55% of Thai AirAsia, fell over 7%
on the announcement before recovering to a 3% decline on the
Thai bourse, against an index gain of 0.4%.
Malaysia's AirAsia Group Bhd owns the remaining
stake in Thai AirAsia.
AAV said it would issue convertible bonds and new shares
worth 14 billion baht and aims to hold all shares in Thai
AirAsia and boost the airline's liquidity.
The announcement comes ahead of re-opening plans https://www.reuters.com/world/asia-pacific/thailand-end-quarantine-some-vaccinated-visitors-nov-pm-2021-10-11
that would allow vaccinated arrivals from five countries
including Britain and Singapore to skip quarantine from
"We are also looking forward to recommencing our key
international routes in the near future in light of the Thai
government's country reopening plan," Tassapon said, adding that
he expects domestic operations to return to 100% by January.
The restructuring, expected to conclude in the first quarter
of next year, includes new shares worth 8.8 billion baht in a
private placement to AirAsia Group, plus six high net-worth Thai
investors, including Palin Lojanagosin, owner of advertising
firm, Plan B Media Pcl, according to the filing.
Bangkok Bank Pcl and a fund managed by Morgan
Stanley will be offered 2.2 billion in convertible bonds
and new shares worth 3 billion baht will be offered to existing
Earlier this year, seven Thai carriers, including Thai
AirAsia, asked https://www.reuters.com/article/thailand-airlines-loans-idUKL4N2OX11U
the government for soft-loans worth 5 billion baht for support.
($1 = 33.3900 baht)
(Reporting by Chayut Setboonsarng; Editing by Martin Petty)