AirAsia X enters next phase of acquiring Capital A’s aviation business to accelerate expansion as a leading airline

SEPANG, 1 August 2024 - AirAsia X (AAX) has announced the submission of the listing application and the draft circular to Bursa Malaysia Securities Berhad (Bursa Malaysia), which details its Proposed Acquisitions of Capital A’s entire equity interest in AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB). In an effort to expedite the process, AAX had also announced the cessation of the Proposed Internal Reorganisation, and to undertake the Proposed Acquisitions under AAX directly.

Upon approval obtained from Bursa Malaysia and despatch of the circular to our shareholders, an EGM will be convened in 21 days. The completion of the Proposed Acquisitions is set to be by end of this year, 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 RM6.8 billion through an RM3 billion new shares issuance. This investment grants them ownership in a mature and ongoing airline business operation, comprising six established airlines and a newly established airline in Cambodia that collectively form Asean's most extensive short- and medium-haul network, consolidating AirAsia’s position as the largest low-cost carrier in Asean.

AirAsia X Chairman, Dato’ Fam Lee Ee said: “As we enter the next phase of the Proposed Acquisitions, this strategic move is set to strengthen our market position and streamline AirAsia 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 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.

"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."

Further details on the Proposed Acquisitions, including their effects on various financial metrics, will be detailed in the circular to shareholders in due course.