AirAsia X (D7, Kuala Lumpur International) has received Malaysian Stock Exchange (Bursa Malaysia) approval regarding the listing and quotation of shares connected with its acquisition of Capital A's aviation businesses.
Under the plan, AirAsia X Berhad, trading as AirAsia X, will pay MYR6.8 billion ringgits (USD1.58 billion) to buy Capital A's equity interests in AirAsia Berhad, operator of AirAsia, and AirAsia Aviation Group Limited (AAAGL), which operates AirAsia Cambodia, Indonesia AirAsia, AirAsia Philippines, and Thai AirAsia. Around half the funds will come from a MYR3 billion (USD697 million) issuance of new shares. In a September 12 filing, AirAsia X Berhad said the stock exchange approved:
- admission to the official list and listing and quotation of up to 223,536,401 warrants to be issued pursuant to the proposed issuance of free warrants;
- the listing and quotation of up to 223,536,401 new shares to be issued arising from the exercise of the warrants;
- the listing and quotation of up to one billion placement shares to be issued pursuant to the proposed private placement;
- the listing and quotation of 2,307,692,307 consideration shares to be issued pursuant to the proposed AAAGL acquisition; and
- the listing and quotation of up to 450,571,813 subscription shares to be issued pursuant to the exercise of the subscription options.
AirAsia X Berhad will now schedule an extraordinary shareholders meeting within 21 days and plans to finalise the acquisition by the end of the year.
"This strategic move is set to strengthen our market position and streamline AirAsia operations across the region," AirAsia X Chairman Fam Lee Ee said last month. "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."
