AIRASIA - Good news or bad news?

I think short term players will heavy "sell on fact" once it's resume.

PROPOSED ISSUANCE AND ALLOTMENT OF 559.00 MILLION NEW ORDINARY SHARES OF RM0.10 EACH IN AAB (“PROPOSED SHARES ISSUANCE”)

INTRODUCTION
On behalf of the Board of Directors of AAB (“Board”), CIMB Investment Bank Berhad (“CIMB”) and RHB Investment Bank Berhad (“RHB”), wish to announce that AAB had on 1 April 2016 entered into a conditional subscription agreement (“Subscription Agreement”) with Tune Live Sdn Bhd (“Subscriber”), an investment holding company owned by both Tan Sri Dr. Anthony Francis Fernandes (“TSTF”) and Datuk Kamarudin Bin Meranun (“DKM”) for the proposed issuance and allotment of 559.00 million new ordinary shares of RM0.10 each in AAB (“Subscription Shares”).

The Subscription Shares represent approximately 16.7% of AAB’s enlarged issued and paid-up share capital(1) , and are to be issued at an issue price of RM1.84 per Subscription Share (“Issue Price”) to be satisfied in cash.

The Issue Price was arrived at by mutual agreement between the parties to the Subscription Agreement based on the 5-market day volume weighted average price (“VWAP”) of the ordinary shares of RM0.10 each in AAB (“AAB Shares”) up to 31 March 2016, being the date immediately preceding the date of the Subscription Agreement, and on the basis that no dividends will be declared or paid on or after the date of the Subscription Agreement. On 31 March 2016, the Company declared a first and final dividend of 4 sen per AAB Share, of which the entitlement date is on 30 May 2016, subject to the approval of AAB’s shareholders at a general meeting to be convened (“Dividend Declaration”).

Accordingly, pursuant to the terms of the Subscription Agreement, the Issue Price shall be adjusted downwards by the equivalent amount to the dividends declared or to be paid per AAB Share under the Dividend Declaration. Hence, the Issue Price will be adjusted from RM1.84 per Subscription Share to RM1.80 per Subscription Share on the basis that the Subscription Shares are not entitled to the Dividend Declaration (“Adjusted Issue Price”). Based on the Adjusted Issue Price, AAB will raise a total gross cash proceeds of RM1,006.20 million.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5046813