Thai AirAsia (TAA) chief Tassapon Bijleveld's 8.28-billion-baht share buyback from King Power Group last week may have been largely influenced by parent AirAsia's desire to consolidate the group's airline subsidiaries.
Fernandes: Pursuing single holding
Industry analysts pointed to that likelihood as Mr Tassapon regained the major shareholdership in Asia Aviation Plc (AAV).
AAV is listed on the Stock Exchange of Thailand and owns a 55% stake in TAA, the country's largest low-cost carrier (LCC).
Analysts who spoke on the condition of anonymity see the buyback of a 36.3% stake in AAV from the Srivaddhanaprabha family as reflecting the aspirations of AirAsia group chief executive Tony Fernandes.
Mr Fernandes is pursuing the creation of a single, publicly traded holding company for its business units in Southeast Asia to propel further expansion of AirAsia in the region.
The broader intention is for flagship AirAsia Berhad, Philippines AirAsia, Thai AirAsia and Indonesia AirAsia to be placed under a holding company, which would be listed in "all the big Asean markets".
Gaining greater ownership through his close association with Mr Tassapon is believed to be one way of boosting control and charting TAA's course to better align with the new corporate structure and Mr Fernandes's vision, the analysts said.
Soon after the buyback was announced, Mr Fernandes on Dec 27 tweeted: "Big day for AirAsia as we move towards Asean and one company. @tassapon takes back ownership of AirAsia Thailand. One Airasia coming with Indonesia and Philippines."
Mr Tassapon declined to comment specifically on the matter, other than saying that the buyback of the stake, which he sold to King Power Group in June 2016, stemmed from his "passionate relationship" with the airline, which he helped establish in 2003.
In a statement issued after the deal, Mr Tassapon said he bought back the shares because of his love for the airline, which he has managed since its founding.
He said the buyback from the Srivaddhanaprabha family, which owns Leicester City football club and King Power duty-free stores, would let him better realise the vision and direction of the company.
The move will support the continuation of TAA's growth plan, such as adding seven A320 jets this year, carrying some 22 million passengers in 2018 and expanding the network in Asean, India and China.
But TAA insiders ruled out any significant conflicts between TAA management and the Srivaddhanaprabha family as being a cause for the share buyback.
"There may be some meddling [by the family] in TAA's running, but that is usual from the perspective of major shareholders," said one insider. "It was not a critical influencing factor."
Meanwhile, the running of AAV has been unaffected in light of its status as a company listed on the Thai bourse, nor could it lead to a delisting of the company, TAA insiders said.
It remains to be seen if Mr Tassapon, with support from Mr Fernandes, will take further steps in acquiring the rest of AAV's listed shares.
In line with regulatory rules, Mr Tassapon must issue a mandatory tender offer for the remaining 58.7% of AAV's shares, priced at 4.70 baht a share, which was the same amount paid by the King Power Group, by Jan 8, 2018.
The price paid by Mr Tassapon is a 50-satang-per-share premium to what his family received from the Srivaddhanaprabha family last year, though the share value increased over time.
Mr Tassapon has made clear that his share purchase is supported by Bangkok Bank Plc.
AirAsia, founded in 2001 by Mr Fernandes and Kamarudin Meranun, has billed itself as an Asean airline connecting 79 destinations via 17 hubs in all 10 Asean countries.
The airline has evolved from being the first no-frills carrier in Southeast Asia to becoming an airline with a growing presence in the global aviation industry.