AirAsia X (D7, Kuala Lumpur International) has decided to abandon its planned internal reorganization and will instead acquire Capital A’s aviation businesses directly, rather than through a newly formed company, AirAsia Group Berhad.
“This decision was made after considering the potential benefits of the proposed internal reorganization against the time required for its implementation, and, more importantly, the need for a swift completion of the acquisitions for the AirAsia X Group,” stated a filing with Bursa Malaysia. “Consequently, on July 26, 2024, the company and NewCo (AirAsia Group Bhd) mutually terminated the internal reorganization agreement.”
Earlier this year, AirAsia X announced plans to take over Capital A’s aviation interests, which include AirAsia Bhd, the operator of AirAsia, and AirAsia Aviation Group Ltd, which manages Indonesia AirAsia, AirAsia Cambodia, AirAsia Philippines, and Thai AirAsia. The original plan involved establishing AirAsia Group Bhd to assume AirAsia X’s listing status, but now AirAsia X Berhad will replace AirAsia Group Bhd in the arrangement.
This restructuring will allow Capital A to concentrate on its non-aviation ventures and will cost AirAsia X approximately MYR 6.8 billion (USD 1.47 billion). According to an April 2024 filing with Bursa Malaysia, the company plans to issue 2.31 billion shares at MYR 1.30 (USD 0.28) each to finance the acquisition of AirAsia Aviation Group Ltd and will take on debts amounting to MYR 3.8 billion (USD 820,000), owed by Capital A to AirAsia Bhd.
AirAsia X aims to finalize the acquisitions by the end of 2024.
