AirAsia acquires 73% stake in Tune Box

AirAsia acquires 73% stake in Tune Box
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KUALA LUMPUR (Dec 2): AirAsia Bhd has acquired 73% stake in Tune Box Sdn Bhd, a designer, developer and seller of inflight entertainment and connectivity (IFEC) solutions, for RM876,000.

In a filing with Bursa Malaysia today, AirAsia said the acquisition would allow it to diversify into the design, sale, supply and provision of IFEC infrastructure solutions (wireless IFEC solution) business.

AirAsia added that the diversification of income, based on Tune Box’s sale of wireless IFEC solution to the AirAsia fleet, is expected to contribute additional revenue garnered from sales to other airlines.

“The acquisition and appointment of the new board of directors will result in the forming of dividend policy and AirAsia will yield dividends representing a higher amount than the total purchase consideration made by AirAsia under the acquisition.

“AirAsia being a launch customer for Tune Box’s wireless IFEC solution, will provide firm validation on Tune Box’s products. The acquisition grants AirAsia a subsidiary company that is innovative and well positioned to expand its products and services across other airlines, to garner market share and achieve its target sales by 2020,” it said.

The group said it bought Tune Box’s 876,000 shares at RM1 per share from UK-based Caterham Technology and Innovation Ltd and vendor Clarence Lim Kee Kiat, using internally-generated funds.

It noted that Caterham is 100% owned by Caterham Enterprises Ltd, which is 50%-owned by AirAsia managing director and chief executive officer Tan Sri Tony Fernandes. The remaining 50% is owned by AirAsia chairman Datuk Kamarudin Meranun.

The transaction will not have effect on the issued and paid-up share capital or the shareholdings of substantial shareholders of the company, nor material effect on the consolidated net assets per share and gearing for the financial year ending Dec 31, 2015.

However, it is expected to contribute positively to the group’s consolidated earnings and earnings per share in future.

AirAsia dropped two sen or 1.41% to RM1.40 today, for a market capitalisation of RM3.9 billion.

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