AirAsia X wants SC action against GMT Research’s ‘misleading statements’
SEPANG: AirAsia X Bhd (AAX) has lodged an official complaint with the Securities Commission (SC) against GMT Research and seeks the regulator’s appropriate action against the research house for various misleading statements and allegations.
AAX said GMT had accused the long-haul budget carrier, among others, of practising or allowing profit shifting between AirAsia Bhd and AAX by way of transfer pricing of the service fees and costs charged by AirAsia.
“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 said in a statement yesterday.
The carrier pointed out that the failure on the part of GMT Research to check, enquire or verify such information prior to issuing any statements necessitated 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 are false or misleading 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 wishes to clarify 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,” AAX added.
In a report dated June 10, the Hong Kong-based GMT Research questioned AirAsia’s accounting practices and accused it of using transactions with its associate companies to boost earnings.
Following that, AirAsia came under selling pressure.
The report pointed out the weaknesses of AirAsia’s financials, starting with the related party transactions it has with its associates in Indonesia and the Philippines.
