AirAsia-MAS Deal: Its not a merger its CCF...Duh!

All the major players, be it from Khazanah, AirAsia or MAS vehemently denied that the AirAsia-MAS deal will create a monopoly.They are claiming that the exercise is not a merger, AirAsia, AirAsia X and Malaysian Airline System have announced they have entered into what is termed a Comprehensive Collaboration Framework (CCF), which includes a major share swap and a collaboration agreement to explore opportunities to cooperate on a broad range of areas. As part of the CCF, six MAS directors have resigned and have been replaced with six new directors, including AirAsia CEO and founder Tony Fernandes. Two MAS executives will join the AirAsia board

According to a report by ATW (Air Transport World), as part of the CCF, MAS and AirAsia are issuing free warrants to each other’s shareholders. A MAS shareholder will be granted approximately one warrant in AirAsia for every 30 MAS shares held, while an AirAsia shareholder will be granted approximately one MAS warrant for every 10 AirAsia shares held.In addition, Tune Air and Khazanah Nasional Berhad, the major shareholders of AirAsia and MAS, respectively, have agreed to acquire from each other existing shares of both companies.

As a result, Tune will hold 20.5% of shares in MAS and Khazanah will hold 10% in AirAsia. In addition, Khazanah proposes to acquire 10% of shares in AirAsia X on terms and at a price to be mutually agreed upon later.According to AirAsia, the agreement enables MAS, AirAsia and AirAsia X “to respectively focus on business segments in which they are capable of developing the most value.” The airlines will now assess and review their network services to enhance their offering, which will include partial interlining and flights to new destinations currently not served by any of the airlines.

In layman term, MAS and AirAsia are not married, they are just living together.....it is going to be interesting, where it goes from here, anyway like I said before....Merry Christmas Tony....darn....it is only August, comes December it will be Merrier Christmas Tony........adios...........a.h.baharom