Posted on: 08 July 2015 by Ross McSweeny
AirAsia X has taken action against what it describes as “various misleading statements and allegations by GMT Research (GMT) in relation to AirAsia X Berhad (AAX) in the recent weeks”, by lodging an official complaint with the Securities Commission (SC) against GMT and is seeking SC’s “appropriate action” against GMT.
According to AirAsia X, GMT has accused AAX, among others, of practising or allowing profit shifting between AirAsia Berhad (AAB) and AAX by way of transfer pricing of the service fees and costs charged by AAB. AAX asserts that the reports and presentation by GMT Research and its representatives concerning AAX are untrue, misleading and inaccurate. AAX categorically refutes any such accusations, allegations or inference and takes great offence and exception to the same.
AAX declared that “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 complaint includes, 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.
AAX concluded by stating that “all relevant costs have been adequately captured in its books and financial statements, which have been duly audited in accordance with Malaysian accounting standards and practices”.