10-Aug-2011 8:28 AM

MAS, AirAsia and AirAsia X enter comprehensive collaboration framework

Malaysia Airline System Berhad, AirAsia Berhad and AirAsia X Sdn Bhd entered (09-Aug-2011) into a Comprehensive Collaboration Framework (“CCF”) which includes a Collaboration Agreement to explore opportunities to co-operate on a broad range of areas. MAS and AirAsia are issuing free warrants to each other’s shareholders. Independent advisers will be appointed to advise minority shareholders on the proposed warrants. A MAS shareholder will be granted approximately one warrant in AirAsia for every 30 MAS shares held. An AirAsia shareholder will be granted approximately one MAS warrant for every 10 AirAsia shares held. In addition, Tune Air Sdn Bhd 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% of shares in AirAsia. In addition, Khazanah proposes to acquire 10% of shares in AirAsia X on terms and at a price to be mutually agreed later. The Collaboration Agreement will come into effect immediately upon its execution, and will remain in effect for a period of five years from the date of the Collaboration Agreement with an option for a further five-year renewal. In addition, a Joint Collaboration Committee (“JCC”) has been formed to implement the Collaboration Agreement which will be chaired by MAS board member Datuk Mohamed Azman Yahya with other members including MAS Executive Director Mohammed Rashdan Mohd Yusof, AirAsia Group CEO Tan Sri Tony Fernandes and AirAsia Deputy Group CEO Dato’ Kamarudin Meranun. [more] [more - AirAsia proposed warrants exchange exercise with MAS] [more - MAS proposed warrants exchange exercise with AirAsia] [more - Summary of principal terms] [more - Collaboration Agreement] [more - Proposed warrants exchange exercise with MAS]

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