PETALING JAYA: Air Asia Bhd group CEO Tan Sri Tony Fernandes is increasing his holdings in Epsom College Malaysia Sdn Bhd from the current 28%, refuting rumours of him pulling out of the company which is setting up a school in Bandar Enstek, Nilai.

“I am not selling out, I am increasing my stake in Epsom to over 35%. I believe it has a good [education] model. For any right wingers and politicians who criticise me and make racist comments, there is not one more Malaysian than me,” he said in a text message.

Talk of Fernandes exiting his investment in Epsom College came just a few days ahead of the launch of AirAsia Asean, the group’s new regional base in Jakarta, Indonesia.

As part of AirAsia’s regional aspirations, Fernandes passed the baton to Aireen Omar to run the Malaysian operation, while he himself moved to head regional operations in Jakarta.

AirAsia’s move to make Jakarta its regional base has drawn criticism, especially from politicians, but Fernandes defended the move as a business decision the group had to make, and said Malaysia is still AirAsia’s home.

Just last week, AirAsia surprised the market with the proposed acquisition of PT Metro Batavia, touted as Indonesia’s fourth largest aviation company.

AirAsia will hold a 49% stake in Metro Batavia Group with the 51% majority held by its Indonesian partner, PT Fersindo Nusaperkasa, to comply with the republic’s civil aviation ownership regulations.

On Epsom College, Fernandes said he has so far invested some RM60 million in its facilities and is prepared to pump more money into the British-style boarding school.

Fernandes’ partner deputy group CEO Datuk Kamarudin Meranun is also a shareholder of Epsom, with a 27% stake. Other shareholders include Kuala Lumpur Education City Sdn Bhd and Asian Strategic Investments Group Ltd that collectively own a 29.6% stake.

Fernandes, however, did not state the cost of his additional stake in Epsom College. The company is now awaiting the facilities for its Senior School on a 20ha tract within the Kuala Lumpur Education City in Nilai. The Senior School, which is a day and boarding school, will open in September 2013.

According to Epsom College’s official website, another site for a new Prep School is being identified in the southwestern suburbs of Kuala Lumpur. The plan is for the Prep School to open 12 months after the Senior School.

Founded in 1885 in the UK, Epsom College was established by Dr John Propert as a school to educate the sons of doctors and Queen Elizabeth is its patron.

Fernandes is a former student of Epsom College and was appointed chairman of the board of governors of the new school in Malaysia. Epsom College Malaysia will ultimately cater for some 900 boys and girls aged 11 to 18 in a predominantly boarding Senior School, with an additional 500 students for the Prep School.

This article appeared in The Edge Financial Daily on August 2, 2012.