23 April 2012
Tune Ins will undertake management of travel insurance business on behalf of AirAsia, projected value worth RM43.16 mil over a period of 10 years
AirAsia Bhd has entered into distribution and call option agreements with Tune Ins Holdings Sdn Bhd and Tune Money Sdn Bhd in relation to the provision of insurance products to AirAsia customers as well as the right to purchase Tune Ins shares.
The company told Bursa Malaysia that the projected value of the distribution of insurance products for a period of 10 years was RM43.16mil while under the call option, Tune Ins and Tune Money granted the airline an irrevocable right to purchase up to 20% equity interest during the tenure of the agreement or prior to the listing of Tune Ins at an option price of one time the net asset of Tune Ins subject to a maximum price of RM16mil.
Under the distribution agreement, Tune Ins would undertake the management of the travel insurance business on behalf of the company.
Meanwhile, under the call option, should the share purchase be exercised and Tune Ins fails to be listed, then AirAsia would have the right to a put option requiring Tune Money, in which Tan Sri Tony Fernandes and Datuk Kamarudin Meranun have direct and indirect interest of 53.21% and 50.36% respectively, to re-purchase the option shares.
Fernandes and Kamarudin have direct and indirect stakes of 13.18% and 13.12% in AirAsia respectively as at April 20.