Capital A and AirAsia X Set New March 2025 Deadline for Aviation Business Acquisition, Allowing Time to Conclude Investor Agreements and RM1 Billion Fundraising Initiative

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AirAsia X Berhad (AAX) and Capital A Berhad (Capital A) have mutually agreed to extend the timeline for completing AAX’s proposed acquisition of Capital A’s aviation assets. Originally set for 25 January 2025, the new deadline has been moved to 24 March 2025, giving both parties additional time to finalize the deal.

The acquisition involves AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB), two core entities of Capital A’s aviation operations. The extended timeframe will also allow AAX to complete negotiations with identified investors for its Proposed Private Placement, an initiative aimed at raising RM1 billion in gross proceeds to bolster the company’s financial position.

All due diligence processes related to AAAGL and AAB have already been successfully concluded, paving the way for the next phase of the acquisition. This extension demonstrates a joint commitment to ensuring that the transaction is executed seamlessly, with both companies focused on aligning their long-term strategic interests.

With this acquisition, AAX aims to enhance its market position and expand its growth potential in the competitive aviation sector. The fundraising initiative, coupled with the transaction’s progress, highlights AAX’s focus on building a strong foundation for future success.

AirAsia X CEO, Benyamin Ismail said: “We are fast approaching the finish line. The majority of key milestones in the process have already been achieved including the unanimous approval of our shareholders at the Extraordinary General Meeting held in October 2024.

“This extension is a pragmatic step to ensure all aspects of the transaction are thoroughly and meticulously addressed, including securing the final approvals and consents from relevant authorities, financiers, and lessors—most of which have already been substantially completed.

“We look forward to the completion of the proposed transactions, as the integration of all AirAsia branded airlines into one strengthened entity will be a game changer for the industry, paving the way in revolutionising the future of low-cost air travel.”

The proposed acquisitions are expected to create substantial synergies, such as improved network connectivity, streamlined fleet utilization, and increased cost efficiency. By unifying operations under a single entity, the airline aims to strengthen its market presence across the Asia-Pacific region and beyond, offering enhanced value to both shareholders and customers.