AIRASIA Group Bhd has entered a preliminary agreement with Universal Music Malaysia Sdn Bhd with the aim of signing and developing Southeast Asian talents to further popularise Asian pop music.
According to the bourse filing made by AirAsia, this partnership “aligns with AirAsia’s focus in developing talents in Asean” and will facilitate the “ancillary growth” of the group’s revenue growth in the music industry, with Universal Music bringing the expertise and skills to the musical venture.
“The joint venture forms part of the broader effort of AirAsia to position itself as an all-in-one travel and lifestyle marketplace,” said the group.
The joint venture, called RedRecords Sdn Bhd, will have a fully paid-up share capital of US$1 mil (RM4.17 mil), with both partners subscribing to an equal amount of shares.
The definitive agreement will be signed within three months of Nov 29, which was the date the agreement was entered.