AirAsia: Transactions (Chapter 10 Of Listing Requirements) Non Related Party Transactions

The Board of Directors of the Company is pleased to announce that PT AirAsia Indonesia Tbk or AAID (formerly known as PT Rimau Multi Putra Pratama Tbk) has today completed the acquisition of shares in PT Indonesia AirAsia or IAA.

As part of the transaction, AAID which is listed on the Indonesia Stock Exchange (IDX) has today acquired a 57.25% shareholding in IAA after recently completed a rights issue of shares and also the divestment of its coal trading and transportation businesses. The net cash proceeds of IDR26 billion from the rights issue and the divestment shall be utilised for working capital purposes of AAID.

AirAsia Investment Ltd (AAIL), a wholly-owned subsidiary of the Company, continues to hold a 20.95% direct shareholding in IAA and pursuant to the transfer of IAA Perpetual Securities amounting to IDR1,274.5 billion to AAID, it has acquired a 47.71% shareholding in the listed AAID. Based on today's last traded price of IDR240, the value of AAIL's quoted investments in AAID is IDR1,223.5 billion or equivalent to RM367.1 million.

The objective of the above corporate exercise is to provide IAA access to the equity capital markets, increase its visibility and profile, and also to benefit from the higher corporate governance standards that demand greater transparency and accountability being an integral part of an IDX listed entity.

PT RHB Sekuritas Indonesia is the Principal Adviser and Principal Arranger for the transaction whereas Hiswara Bunjamin & Tandjung in association with Herbert Smith Freehills acted as legal counsels for the transaction.