Bahrain firm in AirAsia stake deal

Kuala Lumpur, October 14, 2007

Malaysian long-haul budget carrier AirAsia X will sell stakes of 10 per cent each to Bahrain's Perigon Capital and Japan's Orix Group for a total of $75 million, a report said.

The deal, which values the airline at $375 million, is aimed at raising funds for its fleet expansion, the Star newspaper said, quoting unidentified sources.

"The funds raised through this stake sale will be enough to see the airline through the next two to three years and it will meet its funding needs to purchase the new aircraft," it quoted one source.

The airline, which counts British billionaire Richard Branson as a shareholder, is targeting Britain, China and Australia as key trunk routes to and from southeast Asia.

Malaysia's AirAsia owns a 20 per cent stake in AirAsia X.  -Reuters

Tags: Bahrain | AirAsia | Orix Group | Perigon Capital |