AirAsia X enters next phase of acquisition of Capital A’s aviation business

AirAsia X (AAX) announced the filing of a listing application and draft circular with Bursa Malaysia Securities Berhad (Bursa Malaysia) detailing the proposed acquisition of the entire equity stake of Capital A in AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB). In order to expedite the process, AAX also announced the cessation of the proposed internal reorganization and the completion of the proposed acquisitions directly under AAX.

Following approval from Bursa Malaysia and the issuance of a circular to shareholders, an Extraordinary General Meeting of Shareholders will be convened within 21 days. The Proposed Acquisitions are expected to be completed by the end of this year, creating an enlarged airline group under the AirAsia brand and marking a new era for the aviation giant.

Through the Proposed Acquisitions, AAX shareholders gain access to Capital A’s RM6.8 billion aviation business through the issuance of RM3 billion of new shares. This investment provides them with ownership in a mature and ongoing airline business comprising six established airlines and a newly established airline in Cambodia, which together form the largest short-haul and medium-haul network in ASEAN, cementing AirAsia’s position as the largest low-cost carrier in ASEAN.

AirAsia X Chairman Fam Lee Ee said: “As we enter the next phase of our proposed acquisitions, this strategic move aims to strengthen our market position and streamline AirAsia’s operations across the region. By integrating AirAsia Aviation Group’s extensive network and resources with AAX’s medium-haul capabilities, we aim to create a more cohesive and efficient airline group. The synergistic benefits will not only enhance our operational and cost efficiencies, but also provide our guests with a seamless travel experience as demand for regional travel continues to grow.

“In addition, our shareholders stand to benefit significantly from this acquisition. The enlarged entity is expected to deliver improved financial performance, increased revenue streams and cost savings through integrated operations. By discontinuing the proposed internal reorganization, we intend to commit to accelerating this acquisition and realizing its benefits as soon as possible. We anticipate that the enlarged aviation group will attract strong investor interest given our strengthened market position and the growth potential that the combined aircraft orders represent for our expansion ambitions. This move is consistent with our long-term vision to become a leading player in the global aviation industry.”

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