KUALA LUMPUR (Sept 20): Capital A Bhd’s wholly owned subsidiary Asia Digital Engineering Bhd (ADE) has entered into a joint venture agreement with Sivilai Asia Co Ltd to establish a maintenance, repair and overhaul (MRO) business in Cambodia.

ADE will invest 60% in the Cambodian joint venture company ADE Cambodia Co Ltd (ADE Cambodia), while Sivilai Asia will come up with the remaining 40% to undertake the MRO business, Capital A said.

ADE will also inject up to US$1.2 million (RM5.6 million) in two tranches (the first tranche during pre-incorporation and the balance post-incorporation), while ADE will use internal funds for its share of the equity investment, it added.

According to the group, Sivilai Asia is a consultancy management firm that aims to operate hospitality businesses in Cambodia.

“Capital A has incorporated a joint venture company, AirAsia (Cambodia) Co Ltd, to start AirAsia branded airlines in Cambodia and will commence operation in November 2023.

“This will create an opportunity for ADE to establish its operation in Cambodia by providing service to AirAsia Cambodia and other third party airlines operating in Cambodia’s major airports,” it said.

The subscription exercise is expected to be completed in the fourth quarter of 2023, it added.

Shares in Capital A settled three sen or 2.91% lower to RM1, giving it a market capitalisation of RM4.21 billion. The counter has gained 60% this year.