business

AirAsia shares rise up to 91 sen in brisk early trade

KUALA LUMPUR: AirAsia Group Bhd's shares rise in active trade on Bursa Malaysia this morning following news that 10 per cent of the airline's stake will be offered to a South Korean conglomerate.

The stock was Bursa's third most active, edging up a high of 91 sen before the gain was capped at 86.5 sen at 10.15am, up nearly five per cent from its 83 sen closing yesterday.

A total of 897,519 shares changed hands during the period.

AirAsia reportedly was selling 10 per cent of the company's shares to SK Corp, South Korea's third largest conglomerate, at RM1 a share.

The share placement was expected to raise RM334.2 million.

At the time of writing, AirAsia could not be contacted on the placement.

SK Corp, which primarily involves in the energy and telecommunications industries, had a total assets of US$257.9 billion in 2018, according to a daily.

Such cash injection will help support AirAsia in preparing for operations post Covid-19.

Analysts said global airlines were running out of cash to sustain operations, amid the Covid-19 pandemic which had idled their fleet of aircraft.

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