AirAsia X (D7), headquartered at Kuala Lumpur International Airport, has received significant approval from Bursa Malaysia for a major strategic move involving the listing and quotation of shares connected to its acquisition of Capital A’s aviation businesses. This development is set to play a crucial role in reshaping the regional aviation landscape and bolstering AirAsia X’s market position.
Under the outlined plan, AirAsia X Berhad, operating as AirAsia X, will acquire Capital A’s equity interests in two key entities: AirAsia Berhad, the operator of the AirAsia brand, and AirAsia Aviation Group Limited (AAAGL). AAAGL oversees several regional subsidiaries, including AirAsia Cambodia, Indonesia AirAsia, AirAsia Philippines, and Thai AirAsia. The total acquisition value amounts to MYR6.8 billion (USD1.58 billion), marking a substantial investment aimed at expanding and streamlining AirAsia’s operations across the region.
To facilitate this acquisition, AirAsia X will fund approximately half of the transaction through a MYR3 billion (USD697 million) issuance of new shares. This financial strategy includes several components that have received approval from the Malaysian Stock Exchange:
- Warrants Listing: Up to 223,536,401 warrants will be listed, issued as part of a proposed free warrant issuance.
- New Shares from Warrants: The exchange has approved the listing and quotation of up to 223,536,401 new shares resulting from the exercise of these warrants.
- Placement Shares: The issuance of up to one billion placement shares has been sanctioned, which will be part of a proposed private placement.
- Consideration Shares: For the AAAGL acquisition, 2,307,692,307 consideration shares will be listed and quoted.
- Subscription Shares: Additionally, up to 450,571,813 subscription shares will be listed, linked to the exercise of subscription options.
Following this approval, AirAsia X Berhad plans to convene an extraordinary shareholders’ meeting within 21 days. The company aims to finalize the acquisition by the end of the year, signaling a pivotal shift in its operational strategy.
AirAsia X Chairman Fam Lee Ee emphasized the strategic importance of this acquisition, stating, “This move is set to significantly strengthen our market position and streamline AirAsia operations across the region. Our shareholders are poised to benefit substantially from this acquisition, which is expected to enhance our financial performance through increased revenue streams and cost efficiencies derived from integrated operations.”
This acquisition is anticipated to create a more robust and competitive entity in the regional aviation market. By integrating AirAsia’s various operations under one umbrella, AirAsia X seeks to optimize its operational efficiencies, expand its market reach, and deliver greater value to its shareholders. The broader aim is to position AirAsia X as a leading player in the aviation industry, capable of leveraging economies of scale and enhancing service offerings across its regional network.
