KUALA LUMPUR: AirAsia X Bhd
(AAX) has filed a listing application and draft circular with Bursa Malaysia Securities Bhd for its proposed acquisition of Capital A Bhd’s stakes in AirAsia Aviation Group and AirAsia Bhd.
In a statement, AAX said it would expedite the process by ceasing the proposed internal reorganisation and proceeding with the proposed acquisitions directly under AAX.
Upon approval obtained from Bursa Malaysia and despatch of the circular to our shareholders, an extraordinary general meeting (EGM) will be convened in 21 days.
The carrier said the completion of the proposed acquisitions is set to be by year-end, establishing an enlarged aviation group under the AirAsia brand, and signifying a new era for the aviation giant.
With the proposed acquisitions, AAX shareholders gain the opportunity to access Capital A's aviation business valued at RM6.8bil through an RM3bil new shares issuance.
This investment gives them a stake in a large airline operation with six existing airlines and a new one in Cambodia, making AirAsia the biggest low-cost carrier in Asean.
AAX chairman Datuk Fam Lee Ee stated that this strategic move will strengthen their market position and streamline AirAsia operations across the region as they enter the next phase of the proposed acquisitions.
"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 a seamless travel experience for our guests as regional travel demand continues to grow.
"Furthermore, our shareholders stand to benefit significantly from this acquisition. The enlarged entity is expected to deliver improved financial performance, with increased revenue streams and cost savings from integrated operations. By ceasing the proposed internal reorganisation, we are intent on our commitment to accelerate this acquisition and realising its benefits as swiftly as possible,” he added.
"We anticipate that an enlarged aviation group will attract strong interest from investors, given our enhanced market position and the growth potential the combined aircraft orderbook presents for our expansion ambitions. This move aligns with our long-term vision of becoming a leading player in the global aviation industry."
