AAX Issues Circular On Proposed RM6.8 Bln Acquisition For Shareholders' Review

KUALA LUMPUR, Sept 25 (Bernama) -- AirAsia X Bhd (AAX) has released a detailed circular on the RM6.8 billion acquisition of Capital A Bhd's entire equity stake in AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) for its shareholders’ review ahead of its Extraordinary General Meeting on Oct 16.

In a statement, AAX said the proposed acquisition aims to create a focused aviation powerhouse, encompassing seven airlines across Malaysia, Thailand, Indonesia, the Philippines, and Cambodia.

“Upon completion of the transaction, the new aviation group will cover the full spectrum of short, medium, and long-haul air travel services to capitalise on growing travel demand,” it said.

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AAX chief executive officer Benyamin Ismail said this corporate exercise will strengthen the airline group’s competitive edge and enable them to capture growing demand in the aviation sector.

He said the shareholders stand to benefit from the exercise by being part of a more resilient and agile aviation group, ready to adapt and thrive in a rapidly recovering international air travel market.

“AAX will also gain significant advantages by leveraging the broader Capital A’s ecosystem, which includes everything from digital services and ground handling to in-flight offerings. These synergies will help the new aviation group operate more cost-effectively.

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“The proposed share capital reduction, another key element of the proposals, will eliminate accumulated losses, thus enhancing AAX’s financial profile,” he said.

The circular, now available on AAX’s website, provides further details on the proposals, including the Proposed Issuance of Free Warrants, Proposed Private Placement, Proposed AAAGL Acquisition, Proposed AAB Acquisition, Proposed Share Capital Reduction and Proposed Granting of Subscription Options.

-- BERNAMA