KUALA LUMPUR: AirAsia Group Bhd has teamed up with Universal Music Malaysia Sdn Bhd to develop Asean talents with the potential to be marketed for profit within and beyond South East Asia.
The JV company – RedRecords Sdn Bhd – will also further popularise Asian pop music through artists and repertoire; artist development; music recordings and contents; management and agency services (relating to all entertainment activities); and music publishing and merchandising.
The low-cost carrier announced on Friday the partnership aligned with AirAsia’s focus in developing talents in Asean.
“This will facilitate the ancillary revenue growth of AirAsia in the music industry, with Universal Music bringing in the necessary expertise and skills set to create a synergy which will enhance the musical venture.
“The JV forms part of the broader effort of AirAsia to position itself as an all-in-one travel and lifestyle marketplace, ” it said.
AirAsia and Universal Music had signed a preliminary agreement on Nov 29 and for the proposed JV with a definitive agreement within three months.
Subsequent to the incorporation of the JV company, AirAsia and Universal Music will increase the fully paid-up share capital of the JV company from the initial RM2 to US$1mil (RM4.17mil) by subscribing to an equal amount of shares.
The operational and capital requirements of the JV company will be met by debt financing consisting of third party debt financing and a shareholder loan for the initial three-year period by way of a drawdown fund of US$750,000 (RM3.12mil).
The board of the JV company comprises four directors, Datuk Kamarudin Meranun (chairman), Nadda Buranasiri, Ong Chun Eng and Wong Ying Chong.