Saturday, January 21, 2012

SC and BURSA investigate MAS Air Asia Share Swap

SC reviews all trading data on MAS-AirAsia share swap. 

Deputy Finance Minister Datuk Dr Awang Adek Hussin told the Dewan Rakyat that SC and Bursa Malaysia have launched an investigation into the swap deal between MAS and AirAsia.

This so called collaboration between MAS and Air Asia smell fishy. Can't help to feel suspicious about it. All this seem well planned and manipulated, and show that the favour is always on behalf of Air Asia! another scheme to milk MAS? as it always was?Another aspect for you to ponder is manipulation of share price in BURSA Malaysia (KLSE). The share market price is important because it was used as basis to determine the quantum of the share swap, but what is more outstanding is the share given to MAS/Khazanah is of Air Asia X Sdn Bhd! the company that making loss and not even listed! those party in involved must be so brilliant of whatever intention they are up to! please refer the copy of collaboration agreement here 

Sources from

Above is the graph of the share price of AirAsia and Malaysian Airlines System (MAS), the vertical line represents August 5, 2011, just before the announcement of the share swap between AirAsia's parent and Khazanah Nasional. The starting point on the left is April 19, 2011, with AirAsia's share price on RM 2.61 and MAS on RM 1.81.
On August 5, 2011 the price of AirAsia was RM 3.95 (+51%) and the price of MAS was RM 1.60 (-12%).
On August 12, 2011 AirAsia's share price fell to RM 3.45 (-13%) since the announcement while MAS share price went up to RM 1.87 (+17%).
The prices of the shares of both companies before the announcement of the deal are significant, since they were used to price the share swap.
These are multi billion RM companies, if there was indeed insider trading or any other suspicious trade going on, evidence should not be difficult to gather, the amounts of shares involved would be massive.
I am hoping for a speedy probe by the authorities with transparant reporting back to the investment community. The movements of the share prices before and after the announcement do indeed look suspicious, the volume traded was also much higher than normal.
From a Corporate Governance point of view, the fact that the two key people behind AirAsia suddenly become Director and major shareholder in the largest competitor is very worrisome. I simply fail to see how they can avoid conflict of interest situations or how they can act in the best interests of both companies at the same time.

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