KUALA LUMPUR: AirAsia X Bhd (AAX) has sought the Securities Commission Malaysia (SC) to take action against GMT Research for making “various misleading statements and allegations” about the low-cost, long-haul affiliate of AirAsia Bhd in recent weeks.
In a statement yesterday, AAX said it had lodged an official complaint to the SC against the Hong Kong-based research firm, saying that the latter had accused AAX, among others, of practising or allowing profit shifting between AirAsia and AAX by way of transfer pricing of the service fees and costs charged by AirAsia.
AAX also complained that the reports and presentation by GMT Research and its representatives concerning AAX were “untrue, misleading and inaccurate”.
The airline said it categorically refutes any such accusations, allegations or inference, and takes great offence and exception to the same.
“The failure on the part of GMT Research to check, enquire or verify such information prior to issuing any statements necessitates an investigation by the SC for potential violation of the provisions of the Capital Markets and Services Act 2007 (CMSA).
"AAX’s complaints include, without limitation, potential breach by GMT Research of Section 177 of the CMSA, which provides for prohibition against the making of statements or dissemination of information that is false or misleading in a material particular and is likely to induce the sale or purchase of securities by other persons, or is likely to have the effect of raising, lowering, maintaining or stabilising the market price of securities,” it added.
GMT Research is an accounting research firm licensed by Hong Kong's Securities and Futures Commission.
In a June 10 report, GMT Research had questioned the AirAsia group's accounting, profit generation, cash flow issues, leverage and group structure, which had led to shares in AirAsia and AAX to fall. Yesterday, AirAsia closed down 12.75% to RM1.30, while AAX settled 2.44% lower at 20 sen.
This article first appeared in The Edge Financial Daily, on July 9, 2015.