AirAsia, Tune Ins Holdings In Distribution Pact On Insurance

KUALA LUMPUR, April 21 (Bernama) -- AirAsia Bhd has entered into a distribution agreement with Tune Ins Holdings Sdn Bhd to provide insurance products to its customers. In addition, the company has also entered into a call option agreement with Tune Ins Holdings and Tune Money Sdn Bhd for the right to purchase shares in Tune Ins Holdings, it said in a filing to Bursa Malaysia here on Friday. Under the agreement, Tune Ins Holdings would undertake the management of travel insurance business on behalf of AirAsia as well as develop and manage the provision of telesales insurance products issued and underwritten by various insurers. The agreement, for a period of ten years, was valued at about RM43.16 million (US$14.08 million). As for the call option, Tune Money and Tune Ins Holdings would grant AirAsia an irrevocable right to purchase up to 20 per cent equity interest in Tune Ins Holdings during the tenure of the agreement. The call option entitled AirAsia to purchase the shares at the option price of one time the net asset of Tune Ins Holdings, subject to a maximum price of RM16 million (US$5.22 million). -- BERNAMA