AirAsia X Advances Plan to Acquire Capital A’s Airline Interests

AirAsia X (D7) has filed a listing application and draft circular with Malaysia’s stock exchange (Bursa Malaysia) outlining its intention to acquire Capital A’s equity interests in AirAsia Berhad and AirAsia Aviation Group Limited. This includes AirAsia’s operations across several countries, including Cambodia, Indonesia, the Philippines, and Thailand.

The acquisition proposal involves AirAsia X issuing MYR3 billion (USD665 million) in new shares, giving its shareholders access to Capital A’s aviation assets, valued at MYR6.8 billion (USD1.51 billion).

“This strategic move will enhance our market position and consolidate AirAsia operations regionally,” stated AirAsia X Chairman Fam Lee Ee. “Our shareholders will benefit from this acquisition, with expected improvements in financial performance, increased revenue streams, and cost efficiencies from integrated operations.”

The transaction will see AirAsia X Bhd take full ownership of AirAsia Aviation Group Ltd through the share issuance and acquire a 100% stake in AirAsia Bhd for MYR3.8 billion (USD843 million) by assuming debt owed to Capital A. Initially, AirAsia X planned to use a new entity, AirAsia Group Sdn Bhd, for the deal, but recent internal reorganizations led to a direct acquisition approach.

In a separate filing with Bursa Malaysia, Capital A revealed that the transaction would transform its financial status, turning its shareholder fund positive from a negative MYR8.8 billion (USD1.95 billion). This move is expected to help Capital A move closer to exiting its PN17 status, which is designated for companies in financial distress.

Capital A CEO Tony Fernandes remarked, “This achievement reflects four years of dedicated effort and ensures that AirAsia X shareholders will continue to benefit from the aviation businesses’ potential, while providing greater clarity on the investment prospects of each entity.”

Following approval from Bursa Malaysia and distribution of the circular to shareholders, AirAsia X plans to hold an extraordinary general meeting within 21 days. The deal is anticipated to close by the end of the year.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com