Malaysian Air, AirAsia Parents Said to Near Share-Swap Deal; Stock Halted

Malaysian Airline System Bhd. (MAS) and AirAsia Bhd. (AIRA)’s parents are close to an agreement that will give them stakes in each others’ carriers, according to a person involved in the discussions.


Khazanah Nasional Bhd., Malaysian Air’s government- controlled parent, will own 10 percent of AirAsia through the accord, said the person, who declined to be identified because the discussions are private. AirAsia parent Tune Air Sdn. will get a stake in Malaysian Air worth a similar amount, he said.

AirAsia has a market value of $3.6 billion, about double Malaysian Air’s.
An accord may be signed as early as tomorrow, the person said. Both carriers halted their shares from trading today in Kuala Lumpur pending announcements on material transactions, they said in separate statements.

Tony Fernandes, the chief executive officer of Sepang, Malaysia-based AirAsia and the biggest shareholder in Tune Air, declined to comment by text message. Khazanah spokesman Mohd Asuki Abas declined to comment when phoned by Bloomberg News.

Khazanah said in a statement yesterday it will remain the biggest shareholder in Malaysian Air.
To contact the reporter responsible for this story: Elffie Chew in Kuala Lumpur at echew16@bloomberg.net.