AirAsia, ZestAir consummate cash, share swap deal

AirAsia Group, through Philippines' AirAsia Inc., and Zest Airways Inc. on Friday completed a share swap transaction that includes a $16 million cash portion in favor of ZestAir, AirAsia Berhad of Malaysia announced on Friday.

 

The Malaysian budget airline which controls 40 percent of Philippines’ AirAsia acquired 85 percent economic interest and 49 percent voting rights in ZestAir and a 100-percent interest in Yao’s Asiawide Airways Inc., according to to  AirAsia Berhad.

 

In return, ZestAir received $16 million and a 13-percent interest in Philippines’ AirAsia in a transaction that was completed on May 10.

 

ZestAir operates out of the Ninoy Aquino International Airport, while Philippines’ AirAsia uses Clark International Airport as its hub of operations in this part of the world.

 

“With this partnership in place, other than our current base in Clark, Philippines’ AirAsia would be able to operate from the main airport in Manila as well. This helps us to attract feeder traffic into Clark and leverage on Zest Air’s attractive slots from Manila,” Philippines’ AirAsia CEO Marianne Hontiveros noted in a in statement.

 

Through chief executive officer Tan Sri Tony Fernandes, AirAsia Group holds a 40 percent interest in Philippines’ AirAsia with Antonio “Tonyboy” Cojuangco Jr., Michael Romero and Marianne Hontiveros holding 20 percent each. — VS, GMA News