And the deal is done, it’s been denied multiple times over the past few months but in the end the deal was done.

So here at the details:

  • AAV owns 55% of Thai AirAsia, the remainder is owned by the parent
  • 1.89 bn shares sold @ THB 4.2 /share, this represents 39% of shares from the “Founder” Mr. Tasspol Bijleveld and family whom shall now own 6%.
  • Deal size ~ USD 220 or THB 8bn
  • The stock was last trading just north of THB 6 / share
  • 3 management positions shall change, CFO, D of Flight Ops, D of Engineering
  • A mandatory tender offer shall be made to all shareholders at the same price.

Why on earth would King Power Group buy it?

  • Well they got it at a decent price, just below BV of THB 4.3/share
  • Tourism is still growing and it doesn’t look like it’ll stop anytime soon.
  • Branding?
  • I do wonder at what point will AirAsia Thailand open their own airport?

What else?

  • It’s interesting that the CEO was interested at selling his shares @ a discount to market price. It does raise the question what is the actual value of any company listed on the market?
  • Of course no one here is talking about the fact Microsoft just paid USD 26 bn for linkedin, only 115x AirAsia, oh the difference in market size!

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