PETALING JAYA: Capital A Bhd has completed its aviation business disposal (AirAsia Bhd and AirAsia Aviation Group Ltd) to AirAsia X Bhd (AAX), as disclosed in its announcement to Bursa Malaysia dated Jan 16, marking the final chapter of its six-year restructuring journey and the start of its next journey.
The transaction was settled via the allotment and issuance of 2,307,692,307 new AAX shares (consideration shares”) to Capital A and its entitled shareholders by way of a dividend-in-specie, together with AAX’s assumption of RM3.8 billion previously owed by Capital A to AirAsia Bhd. Concurrently, AAX also allotted and issued 606,060,606 placement shares to investors. The consideration shares and the placement shares are scheduled to be listed and quoted on the Main Market of Bursa Malaysia tomorrow.
The completion of this transaction consolidates all AirAsia-branded airlines under a single airline platform (AirAsia Group) while Capital A pivots to grow its non-aviation portfolio, Capital A said in a statement today.
Capital A CEO Tan Sri Tony Fernandes said, “This is one of the most emotional moments of my career. We are finally closing the most challenging chapter in our history. This represents the culmination of one of the most complex and rigorous restructuring exercises undertaken by an aviation group, since Covid brought aviation to a standstill six years ago. Giving up was not an option, and we chose to rebuild the right way, step by step, approval by approval, and never taking ‘no’ for an answer. Now, the aviation disposal is finally complete.
“To my Allstars, shareholders, partners and regulators – this is not just an end of a restructuring process but a journey of proving our resilience, grit and determination to get through the toughest times and come out stronger. I could not be more proud of what we have achieved.
“AirAsia will become one consolidated airline group to deliver better connections and value to our guests. At Capital A, our ecosystem – ADE, Teleport, AirAsia MOVE, AirAsia Next and Santan, will sharpen their strategic focus and accelerate growth, while ensuring long-term sustainability and value creation for our shareholders. I am excited for our next journey.”
Capital A group CFO Teh Mun Hui commented, “Over six years and multiple jurisdictions, we balanced speed with regulatory discipline. We engineered a clean transfer: consideration in AAX shares and RM3.8 billion of liabilities assumed by AAX, protecting cash, right-sizing the balance sheet and creating two focused entities.
“With completion in hand, distribution to entitled shareholders will coincide with the listing, and we will promptly seek to lift the PN17 label. Capital A with disciplined capital and strong governance of our five businesses – ADE, Teleport, AirAsia MOVE, AirAsia Next and Santan are built to lower costs, grow revenue and deliver durable returns.”
Capital A will provide further updates as the remaining procedural steps are completed, and the progress of the PN17 uplift application.
