Capital A (formerly AirAsia Group) and the new holding companies for AirAsia Group and AirAsia X have agreed to sell Capital A’s aviation business.
Capital A will exchange shares with the AirAsia Aviation Group, which consists of AirAsia subsidiaries in four countries excluding Malaysia, and with AirAsia Group. Out of the shares worth 3 billion Malaysian Ringgit obtained through the share exchange, 2.2 billion Malaysian Ringgit worth of shares will be distributed to shareholders. Additionally, while Capital A will sell its AirAsia operations in Malaysia for 3.8 billion Malaysian Ringgit, the debt of the same amount that Capital A holds against AirAsia will be offset by being taken over by AirAsia Group.
Prior to the transaction, AirAsia X’s shares and listing status will be transferred to AirAsia Group, integrating the aviation business as AirAsia X’s shareholders will hold shares in AirAsia Group. This integration is part of the “One Airline Strategy” to connect Europe, Africa, Central Asia, North America, and ASEAN, aiming for rapid business expansion.
As a result of this transaction, the value of Capital A’s aviation business will be over twice its current market capitalization, amounting to 6.8 billion Malaysian Ringgit. Capital A will continue to hold its four core businesses including Capital A Aviation Services, Teleport, MOVE Digital, and Capital A International.
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This article was generated using automatic translation by GPT-4 API. The translation may not be accurate.
