AirAsia Group Berhad Might Be Acquired By Tata Sons Completely

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AirAsia’s future does not look good at the moment. Ernst and Young noted that the airline already had a loss of $282 million with current liabilities exceeding its current assets by $430 million for the FY 2019-20. Bad thing for the airline is this financial report is from before the coronavirus impact. Ernst and Young have shown concerns about the continuity of the airline. On Monday, AirAsia had reported a significant quarterly loss as well. Since the airline is not a good position, it may be bought out by another company. Reportedly, Tata Sons is looking to completely buyout AirAsia Group Berhad.

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Tata Sons to Buy Out Remaining 49% Stakes of AirAsia

Tata Sons, which is a holding company of Tata Group may buyout complete AirAsia Group Berhad. For the unaware, Tata Sons already hold 51% stakes in the airline. With the financials looking very bleak, AirAsia needs a lifeline. It can come in the form of Tata Sons buying the group out. Tata Sons won’t do it alone though. The Indian conglomerate is looking to tie up with other institutional investors for the buyout.

AirAsia in a statement said that it is looking to raise more than 1 billion ringgit ($234.52 million). This statement came after the airline’s auditor had cast doubts on its continuation. AirAsia has declined to make any comment on the auditors report.

However, AirAsia’s CEO, Tony Fernandes believes the airline would be profitable soon. He further said that the airline might raise 2 billion ringgit ($469 million). If that happens, in the next six months, AirAsia would come back in a very comfortable position. This is an ambitious move from the airline. But if it happens, it would certainly be able to turn back its losses into profits.

Tony Fernandes also cleared all the rumours about AirAsia pulling out of its joint ventures from India and Japan. Only time will tell what the future of the airline is. Tata Sons is eager to buy out the airline. One of the bigger reasons why Tata Sons is looking it buyout the airline with other institutional investors is to get a steep discount.

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Tanay hails from Bilaspur, Chattisgarh and is a sports and fitness enthusiast. Reading and writing is something which comes to him out of love for the web of magic that words can create.

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