KUALA LUMPUR (May 3): Shares of MALAYSIAN AIRLINE SYSTEM BHD [] and AIRASIA BHD [] advanced on Thursday after the airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.
The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.
The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.
MAS rose 12 sen to RM1.34 before trading lower at RM1.27 at 11.34am with some 6.1 million shares done.
AirAsia which fell as much 4% to RM3.20 earlier, rose 32 sen to RM3.65. The stock was traded at RM3.56 at 11.36am with about seven million shares done.
In separate statements to the exchange, MAS and AirAsia said both firms have agreed to terminate their share swap arrangements. As a result, the domestic airlines said they have signed a supplemental agreement to revise the terms of their collaboration.
This has prompted MAS and AirAsia to sign two memorandums of understanding to define the scope their proposed collaboration. According to both firms, this include an assessment on the feasibility of establishing a joint venture firm which will offer aircraft component maintenance services besides a plan to set up a special purpose vehicle to undertake joint procurement processes.
The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.
The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.
MAS rose 12 sen to RM1.34 before trading lower at RM1.27 at 11.34am with some 6.1 million shares done.
AirAsia which fell as much 4% to RM3.20 earlier, rose 32 sen to RM3.65. The stock was traded at RM3.56 at 11.36am with about seven million shares done.
In separate statements to the exchange, MAS and AirAsia said both firms have agreed to terminate their share swap arrangements. As a result, the domestic airlines said they have signed a supplemental agreement to revise the terms of their collaboration.
This has prompted MAS and AirAsia to sign two memorandums of understanding to define the scope their proposed collaboration. According to both firms, this include an assessment on the feasibility of establishing a joint venture firm which will offer aircraft component maintenance services besides a plan to set up a special purpose vehicle to undertake joint procurement processes.
