Capital A, AirAsia Airlines Group to sell 100% stake in AirAsia for RM6.8 billion

kuala lumpur: Capital A Bhd has entered into a conditional share purchase agreement with AirAsia Group Sdn Bhd (AAG) to dispose of 100% stake in AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) for RM6.8 billion. .

The group entered into a conditional share purchase agreement with AAG to dispose of AAAGL for RM3.0 billion and AAB for RM3.8 billion.

AAAGL and AAB are wholly owned subsidiaries of Capital A.

Pursuant to AirAsia X Bhd (AAX)’s proposed internal reorganization, AAG will take over the listed status of AAX before the proposed disposal is completed.

Capital A also announced the proposed distribution of new ordinary shares of AAG to be received by the group’s entitled shareholders as consideration shares in the proposed AAAGL disposal of approximately RM2.2 billion.

“The disposal consideration of AAAGL of RM3 billion will be fully met by issuing 2.3 billion new AAG shares at an issue price of RM1.30 per share,” the group said in a 68-page document filed with Bursa Malaysia yesterday. “It will be done,” he said.

The consideration for disposal of AAB will be met by AAG assuming RM3.8 billion of the company’s debt owed by AAB on the completion date of AAB, subject to the terms of the disposal.

Additionally, based on Capital A’s audited consolidated financial statements for the year ended December 31, 2022 (Fiscal Year 2022), the proposed disposition of AAAGL will result in the remeasurement of the remaining interest in AAAGL upon completion. He said pro forma gains are expected to occur. The disposal amount is approximately RM4.69 billion.

With respect to AAB, the proposed AAB disposal is expected to result in a pro forma gain on disposal of AAB upon completion of approximately RM6.07 billion, based on the Group’s audited consolidated financial statements for FY22. said.

“The proposed disposal is aimed at Capital A to streamline the group’s core business activities and focus on aviation services and digital businesses that are essential and complementary to the passenger aviation business,” the company said. .

Upon completion of this exercise, the Aviation Services and Digital business will primarily include a wholly-owned subsidiary, Asia Digital Engineering. The Super App segment is conducted by Capital A’s SuperApp, his 96.19% subsidiary. The logistics department is carried out by Teleport, a 77.56% subsidiary. The digital payments division is carried out by BigPay, a 99.56% subsidiary of the group.

“Furthermore, after the proposed distribution, eligible shareholders will be able to continue to participate in the business of the new aviation group through their AAG shares held, which will be listed on the main market of Bursa Securities after the proposed internal restructuring of AAX. It’s a schedule.”

It also noted that Capital A plans to record a gain on the remeasurement of equity in AAAGL and a gain on disposal of AAB, which is expected to improve the group’s shareholders’ equity as it normalizes its financial situation.

“The proposed disposal will bring all aviation entities operating under the AirAsia brand under a new investment holding company, AAG, which will include AAG, AAX and its group of companies (AAG Group), AAAGL Group An expanded aviation group will be formed consisting of “AAB Group,” and the AAB Group, collectively referred to as the New Aviation Group.”

“This allows AAX Group to become part of an expanded aviation group with award-winning airlines with over 22 years of history and track record.

“The new aviation group will operate domestic and international flights to numerous destinations from Malaysia, Thailand, the Philippines, Indonesia and Cambodia, and will operate a full range of low-cost air transport services across short, medium and long distances. I will provide it.”

On January 8, Capital A signed a non-binding offer letter with AAX for the proposed sale of its aviation businesses, namely AirAsia Bhd (AirAsia Malaysia) and AAAGL, with the aim of streamlining the company and its group companies. did. Its core business activities will focus on aviation services and digital business.

AAAGL operates passenger air services through subsidiaries in Thailand, Indonesia, the Philippines and Cambodia.

After the exercise, the aviation services and digital business will mainly encompass Asia Digital Engineering Sdn Bhd, AirAsia SuperApp Sdn Bhd, Teleport Everywhere Pte Ltd, and BigPay Pte Ltd. – BERNAMA.

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