KUALA LUMPUR (Oct 16): AirAsia X Bhd’s (KL:AAX) shareholders and proxies have voted 99.08% in favour of the proposed RM6.8 billion acquisition of AirAsia’s aviation business — AirAsia Bhd and AirAsia Aviation Group Ltd — from its sister company Capital A Bhd (KL:CAPITALA).
AAX’s shareholders have also voted in favour of the proposed issuance of free warrants, private placement to raise gross proceeds of RM1 billion, share capital reduction, and subscription shares at the extraordinary general meeting (EGM) on Wednesday.
AAX said the acquisition is expected to be completed by the end of this year, subject to final court and regulatory approvals, AAX said in a statement.
“This acquisition will give us access to over 200 existing aircraft and 361 future aircraft order books from Capital A’s aviation portfolio, combining both narrow-body and wide-body aircraft into a unified group, enabling us to expand our reach across long-, medium-, and short-haul segments,” AAX chairman Datuk Fam Lee Ee said.
AAX chief executive officer (CEO) Benyamin Ismail said the group will be prioritising its sustainable expansion, operational excellence, and innovation, to ensure that AirAsia continues to lead in the low-cost market.
PN17 almost over for Capital A, says Fernandes
Meanwhile, Capital A CEO Tan Sri Tony Fernandes took on his Instagram to express his joy over the EGM earlier.
“One of the happiest days of my life. Covid is almost over and PN17 (Practice Note 17) as well,” Fernandes said.
Capital A had on Monday (Oct 14) secured minority shareholders’ approval to dispose of its 100% stake in its aviation business for RM6.8 billion to AAX, in exchange for AAX shares and Capital A’s debt novation to AAX.
At noon break on Wednesday, shares of AAX were seven sen or 4.05% higher to RM1.80, valuing the group at RM804.73 million.
Shares of Capital A, meanwhile, were traded four sen or 4.28% higher at 97.5 sen, giving the group a market capitalisation of RM4.18 billion.