Privatise AirAsia, take-over Malaysian Airlines; Another Avenue Assets-ECM Libra in the making?

The following has been recently reported:

Southeast Asia's largest discount airline, rose for the first time in three days on the Kuala Lumpur stock exchange after the Edge newspaper said the carrier's biggest shareholders are considering a buyout.
(http://www.bloomberg.com/apps/news?pid=20601213&sid=a88FsGpZNzk8&refer=home)


AIRASIA Bhd's major shareholders may have to pay some RM1.25 billion to take the budget carrier private, analysts say.
(http://www.btimes.com.my/Current_News/BTIMES/Monday/Frontpage/jasia05-2.xml/Article/index_html)


Readers are reminded that Fernandes and Co, AirAsia's major shareholders, are not what one might consider cash-rich. Hence the question to ask here is how such a deal might be made doable. One option, which this writer thinks is probable, might involve the following:

a) Tune Air ie Fernandes and Co borrow the required sum , say RM 1.25 billion as reported, and take AirAsia private, AirAsia stock serving as collateral for a bridging facility

b)The loans are then transferred to AirAsia, and/or charged against AirAsia's assets,instead of AirAsia stock

c)The entire company with its new borrowing is then injected into a listed company, freeing Tune Air of any debt obligation and instead providing it unencumbered , tradeable, liquid stock.


Readers get no prizes for guessing that the listed company is likely to be Malaysian Airlines Bhd. Subsequently, Tune Air gets a substantial if not the majority stake in MAS and probably the right to manage the merged AirAsia-MAS. After all, Tony and Co have proven that they have undoubted skills in airline management (see story below).

The above bears similarity to the Avenue Assets-ECM LIbra transaction (http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_2aa8cb03-cb73c03a-b113c700-cc9e648c).
Readers will recall that Tony & Co and Kalimullah Hassan and Lim Kian Onn of ECM Libra are now associated via AirAsia X and other ventures-see http://www.airasia.com/site/my/EN/pressRelease.jsp?id=17e1b7ba-ac1e00ae-39281400-a8ef3d01 & http://www.smidec.gov.my/pdf/3)AirAsia%20X.pdf

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