F&S Holdings Inc. of the Romero family became Air Asia Inc.’s single largest shareholder after acquiring more shares in the Philippine unit of Southeast Asia’s largest budget carrier.
F&S Holdings, owned by Rep. Michael Romero and his wife Sheila Romero, bought 28.7 percent of shares in AirAsia, raising its total stake to 44.4 percent from 15.7 percent.
The company acquired the 13-percent and 15.7-percent holdings of AAI from Ambassador Alfredo Yao and Marianne Hontiveros, respectively.
Hontiveros remained the chairperson of AAI as she holds a 3-percent stake in F&S Holdings. Businessman Antonio Cojuanco’s TNR Holdings still own 15.7 percent while AirAsia Bread founders Tony Fernandes and Kamarudin Menardum control the remaining 40 percent.
Sheila Romero said, “it’s the right time” for the company to increase its shares in AAI as the budget airline already turned around.
“I think the other former owners would like to expand their other businesses, so on our end, his [Mikee] vision is to support AirAsia, since we are one of the founding owners of AirAsia,” she said.
Mikee Romero said AAI was turning around and becoming a profitable company.
“We plan to make revenues from P30 billion this year to P50 billion in three years’ time,” he said, adding the company was aiming for a “short of P2 billion” in net income this year. AAI posted a net income of P440 million and revenues of P6.8 billion in the first quarter.
The company incurred a net loss of P2.17 billion in 2018 because of costlier jet fuel prices and volatile foreign exchange rate out of P20.90 billion in revenues.
Romero said the company planned to conduct an initial public offering by November or December this year.
“We are planning to raise an initial of about $200 million mostly for aircraft acquisitions and working capital. Our partners want to list the company within the year,” he said.
AAI tapped Citibank and BDO Capital and Investment Corp. as financial advisors.
The company plans to expand its fleet from 23 to 50 aircraft with the next three years.
The airline operates several flights to and from Manila, Davao, Cebu, Kalibo, Caticlan (Boracay), Tacloban, Tagbilaran (Bohol), Puerto Princesa (Palawan), Clark and Iloilo in the Philippines.
It operates international flights to and from Shanghai, Taipei, Incheon (Seoul), Hong Kong, Macau, Kuala Lumpur, Kota Kinabalu, Guangzhou, Vietnam, Shenzhen, Kaohshing, Bali, Shenzhen, Indonesia, Singapore and soon Japan.