AirAsia X has completed the acquisition of AirAsia Berhad and AirAsia Aviation Group from Capital A on Monday (January 19).
This will see all the AirAsia-branded airlines under a single aviation platform as Capital A continues its restructuring — focussing on other core non-airline businesses.
Both short- and long-haul AirAsia airlines now operate under the AirAsia group.
“This marks a defining moment for the group,” said AirAsia X chairman Dato' Fam Lee Ee. “With the consolidation now complete, we have established a stronger, more streamlined aviation platform that is well-positioned for sustainable growth, operational excellence and long-term value creation for all stakeholders.”
The transaction was settled through the issuance of 2.31bn new AirAsia X shares to Capital A and its entitled shareholders, along with AirAsia X assuming around 3.8bn Malaysian ringgit ($937 million) in liabilities that were previously held by Capital A to AirAsia Berhad.
Additionally, AirAsia X issued 606 million new shares to third-party investors under a private placement, which were listed on the Bursa stock exchange the same day.
Following the acquisition, AirAsia X announced a new leadership structure, appointing Bo Lingam as group CEO and Farouk Kamal as deputy group CEO.
The transaction also supports Capital A’s progress towards exiting PN17 status — Malaysia's status for financially distressed companies.
On January 21, the Malaysian High Court approved Capital A’s 5.51bn ringgit ($1.35bn) capital reduction, completing all major steps under its regularisation plan. Capital A said its remaining non-aviation businesses have been profitable for four consecutive quarters, with shareholders’ funds expected to turn positive upon completion.
Post-regularisation, Capital A will focus on five core businesses: Asia Digital Engineering, Teleport, AirAsia MOVE, AirAsia Next and Santan.