Capital A Sells Aviation Units to AirAsia X in Major Restructuring
Capital A has completed the sale of its aviation businesses to AirAsia X, marking a key milestone in a wide-ranging restructuring aimed at consolidating airline operations under a single corporate structure. As part of the process, Capital A also reduced its direct equity stake in AirAsia X, underscoring its shift away from aviation as a core business focus.
In a filing with Bursa Malaysia, Capital A said the disposal of AirAsia Aviation Group and AirAsia was completed on January 16. The transaction was settled through the issuance of approximately 2.3 billion new AirAsia X shares to Capital A and its shareholders. In addition, AirAsia X assumed MYR3.8 billion (USD937.2 million) in debt previously owed by Capital A to AirAsia Berhad.
AirAsia Aviation Group serves as the holding vehicle for all non-Malaysian joint ventures operating under the AirAsia brand, making the transaction a significant step toward simplifying ownership and operational oversight across the group’s airline interests. The consolidation is intended to streamline governance, reduce duplication, and create a clearer separation between aviation and non-aviation activities.
Alongside the acquisition, AirAsia X completed a private placement on January 16, issuing 606 million new shares to raise MYR1 billion (USD246.6 million). Both the shares issued as consideration for the acquisition and the placement shares were listed on January 19, strengthening AirAsia X’s capital base following the enlarged group structure.
Separately, Capital A disclosed that it sold 17 million AirAsia X shares on January 14 for MYR28.1 million (USD6.9 million). The shares were sold at MYR1.65 each, reducing Capital A’s direct stake in AirAsia X from 12.77% to 8.96%. The company said the reduction was necessary to ensure that Capital A and parties acting in concert remain below Malaysia’s 33% mandatory takeover threshold.
While Capital A remains a minority shareholder in AirAsia X, it confirmed that its principal strategic focus will now be on non-aviation businesses, including digital services, logistics, and other growth platforms. Chief executive Tony Fernandes described the completion of the transaction as the most challenging chapter in the company’s history, adding that it allows Capital A to concentrate on resolving its Practice Note 17 financial distress status.
With the consolidation complete, AirAsia X has indicated that it is evaluating a potential corporate rebranding to AirAsia Group, although no formal applications have yet been submitted. Industry observers say the completed restructuring provides a cleaner platform for both companies as they pursue distinct strategic paths.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com