Shareholders have approved the proposed acquisition of Malaysian investment firm Capital A's equity interest in AirAsia by AirAsia X for RM6.8 billion ($1.58 billion).
The acquisition was approved at an extraordinary general meeting (EGM) held on October 16, 2024., with 99.08% of shareholders voting in favour of the acquisition.
Additionally, shareholders voted in favour of the resolutions for the proposed issuance of free warrants, proposed private placement to raise gross proceeds of RM1 billion ($232.7 million), proposed share capital reduction and proposed granting of subscription shares.
“We extend our gratitude to our shareholders for their strong validation of our growth plans moving forward. This acquisition positions us on the brink of a transformative shift at AirAsia, uniting medium and short-haul operations into a powerful low-cost carrier network,” said Benyamin Ismail, CEO of AirAsia X.
He continued: “We will prioritise sustainable expansion, operational excellence, and innovation, ensuring that AirAsia continues to lead in the low-cost market. With over 23 years of experience in building market-leading airlines and multi-hub operations, we are not only better positioned to seize market opportunities but also to strengthen our competitive edge and build a future-ready airline that places our customers at the heart of everything we do.”
In 2001, Tony Fernandes and Kamarudin Meranun bought AirAsia which at the time had two aircraft and 200 staff. AirAsia is now the fourth largest in Asia, with more than 200 aircraft and 21,000 staff primarily based across Malaysia, Thailand, Indonesia, the Philippines, Cambodia.
Dato’ Fam Lee Ee, Chairman of AirAsia X commented further: “The unanimous approval from our shareholders marks a pivotal moment for AAX as we take a bold step forward in shaping the future of low-cost travel.
He added: “Our focus now is on sustainable expansion and innovation, driving greater value for our guests and shareholders. As we move into this exciting new chapter, the enlarged aviation group is poised to capture even more growth opportunities and build a more sustainable business model for the decades ahead.”
The acquisition is set to provide AirAsia X with 200 aircraft from the airline’s current fleet along with 361 that are on order books from Capital A’s aviation portfolio.