After much speculation, finally Tune Air admitted that they are mulling plan to privatizing AIR ASIA at the price of RM 1.35 per share, which is about RM 0.80 higher then today's closing price.

However, Tune Air said that the option was still being developed and the plan to privatize AIR ASIA might change. Below is the news quoted from THE STAR BUSINESS.

Tuesday October 7, 2008 MYT 8:22:56 PM
Tune Air mulls privatisating AirAsia at RM1.35 per share

PETALING JAYA: Tune Air Sdn Bhd, the major shareholder in AirAsia Bhd, is mulling plans to take the low-cost carrier private at an indicative price of about RM1.35 per share.

AirAsia said in a statement to Bursa Malaysia on Tuesday that Tune Air’s RM1.35 per share plan was subject to change depending on the market conditions at the point of decision.

It added Tune Air was continually exploring various options to optimise and expand its operations, especially during the current times due to the volatile fuel prices, business environment and the financial and capital markets.

“One option being considered by Tune Air is a potential privatisation exercise of AirAsia at an indicative price of about RM1.35 per AirAsia share, which is subject to change depending on the market conditions at the point of decision,” it added.

It said the option was still being developed and it was subject to the availability of financing on acceptable terms from financial institutions and other potential investors in the current challenging times, as well as conducive market and industry conditions.

AirAsia share price closed two sen higher to RM1.27 yesterday.

It seems like Bursa Malaysia is going to lost another gem if the privatization is launched. Although AirAsia is not among one of the stock that catch my attention, however i do believe that Air Asia will have a great future if AIR ASIA can survive this financial crisis.