SC approves AirAsia, MAS proposed warrants exchange

KUALA LUMPUR (Jan 4): The Securities Commission has approved the
proposed warrants exchange between AIRASIA BHD [] and MALAYSIAN AIRLINE
SYSTEM BHD [] (MAS) under a tie-up between both airlines.

The
airlines said in their statements to Bursa Malaysia on Wednesday the SC
has approved the warrants exchange under the Capital Markets and
Services Act 2007 of Malaysia.

However, the exchange was subject
to the condition that their investment banks and the airlines comply
with the relevant rules pertaining to the implementation of the proposal
as stipulated under the SC's Equity Guidelines.

In August,
2011, the tie-up would see Khazanah Nasional Bhd, which owns 69.5% in
MAS, taking up a 10% of shares in AirAsia. Tune Air Sdn Bhd, which owns
some 23% in AirAsia will hold 20.5% shares in MAS.

The partnership was estimated to potentially save both airlines as much as RM1 billion annually.