Bahrain firm eyes AirAsia X

Malaysian long-haul budget carrier AirAsia X will sell stakes of 10% each to Japan's Orix Group and Bahrain's Perigon Capital for a total of $75 million, a local newspaper reported on Saturday.

The deal, which values the airline at $375 million, aimed to raise funds for its fleet expansion, the Star newspaper said, quoting unidentified sources.

"The funds raised through this stake sale will be enough to see the airline through the next two to three years and it will meet its funding needs to purchase the new aircraft," it quoted one source as saying.

Company officials were not immediately available for comment.

The airline, which counts British billionaire Richard Branson as a shareholder, is targeting Britain, China and Australia as key trunk routes to and from southeast Asia.

Malaysia's AirAsia owns a 20% stake in AirAsia X, as does Britain's Virgin Group, controlled by Branson.

AirAsia X aims to fly 10 million passengers a year within five years and expects to list its shares on the Malaysian stock exchange by 2010.

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