KUALA LUMPUR (Jan 27): The deadline for AirAsia X Bhd’s (KL:AAX) proposed RM6.8 billion acquisition of Capital A Bhd’s (KL:CAPITALA) short-haul aviation business — AirAsia Bhd and AirAsia Aviation Group Ltd — has been extended by two months.
According to a statement on AirAsia Group Bhd's website, the mutually agreed extension moves the completion deadline to March 24, from the original date of Jan 25, in order to allow both companies to finalise the deal.
AAX chief executive officer Benyamin Ismail said the extension is a pragmatic step to ensure all aspects of the exercise are thoroughly and meticulously addressed, including securing final approvals and consents from relevant authorities, financiers, and lessors — most of which he noted to have been already "substantially completed".
"During this period, AAX will also finalise the definitive terms with identified investors for the proposed private placement, aimed at raising gross proceeds of RM1 billion," AAX said.
All due diligence processes for both entities had been successfully finalised, it added.
This corporate exercise is intended to help Capital A exit Practice Note 17 (PN17) status, which it fell into in 2022.
Shareholders of both Capital A and AAX approved the merger of Capital A’s short-haul airline business into AAX in October last year.
Shares in Capital A closed one sen or 1.07% lower at 92.5 sen on Monday, valuing the group at RM3.99 billion. AAX shares closed eight sen or 4.26% lower at RM1.80, giving the airline a market capitalisation of RM804.73 million.