AirAsia X Approves $1.58 Billion Capital A Acquisition
AirAsia X (D7) has received approval from Bursa Malaysia, the Malaysian Stock Exchange, for the listing and quotation of shares related to its acquisition of Capital A’s aviation businesses. This significant move positions AirAsia X for expanded operations and enhanced market presence in the competitive aviation sector, reported ch-aviation.com.
Under the acquisition plan, AirAsia X Berhad will pay MYR 6.8 billion (approximately USD 1.58 billion) to acquire Capital A’s equity interests in AirAsia Berhad, the parent company of AirAsia, as well as AirAsia Aviation Group Limited (AAAGL). The latter operates multiple subsidiaries, including AirAsia Cambodia, Indonesia AirAsia, AirAsia Philippines, and Thai AirAsia. To finance this acquisition, AirAsia X will raise around half of the required funds through a MYR 3 billion (USD 697 million) issuance of new shares.
In a filing dated September 12, AirAsia X Berhad confirmed that the stock exchange approved several key aspects of the acquisition. These include admission to the official list and the listing and quotation of up to 223,536,401 warrants to be issued as part of the proposed issuance of free warrants. Additionally, the stock exchange approved the listing and quotation of up to 223,536,401 new shares arising from the exercise of these warrants, as well as up to one billion placement shares to be issued through a private placement.
Moreover, the approval encompasses the listing and quotation of 2,307,692,307 consideration shares related to the AAAGL acquisition and up to 450,571,813 subscription shares to be issued upon the exercise of subscription options. This comprehensive approach to financing reflects AirAsia X’s commitment to strengthening its financial foundation while expanding its operational footprint.
Following this approval, AirAsia X Berhad plans to convene an extraordinary shareholders meeting within the next 21 days. The airline aims to finalize the acquisition by the end of the year, a timeline that highlights its urgency in capitalizing on growth opportunities within the aviation sector.
“This strategic move is set to strengthen our market position and streamline AirAsia operations across the region,” stated AirAsia X Chairman Fam Lee Ee last month. He emphasized that shareholders could expect significant benefits from the acquisition, including enhanced financial performance driven by increased revenue streams and cost efficiencies from integrated operations.
This acquisition is a pivotal moment for AirAsia X, as it seeks to capitalize on synergies across its expanded network. The integration of Capital A’s businesses is anticipated to bolster operational efficiency, providing a more cohesive travel experience for customers throughout Southeast Asia. By broadening its service offerings and enhancing its market presence, AirAsia X is positioning itself to compete more effectively in the evolving aviation landscape.
As the airline moves forward with this strategic acquisition, the focus remains on delivering value to shareholders and customers alike. The expected improvements in operational performance and financial metrics will play a crucial role in AirAsia X’s efforts to secure its place as a leading low-cost carrier in the region. With the backing of Bursa Malaysia and a clear growth strategy, AirAsia X is poised for a promising future in the aviation industry.
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com