KUALA LUMPUR (May 30): AirAsia X Bhd (KL:AAX) and Capital A Bhd (KL:CAPITALA) have extended the deadline for their aviation business restructuring deal by two months — from May 31 to July 31, 2025 — to, among others, finalise terms of AirAsia X’s RM1 billion private placement with investors.

In a filing with Bursa Malaysia, the two companies said the extension is also to secure approvals from authorities, lenders and other parties which are pending.

Capital A in its filing with the bourse said due diligence for both AirAsia Aviation Group and AirAsia Bhd has been completed.

AirAsia X had announced plans to buy AirAsia Aviation Group for RM3 billion and AirAsia Bhd for RM3.8 billion on April 25, 2024. The deal included a plan by AirAsia X to raise RM1 billion via a private placement of shares to identified investors.

In early May, Capital A’s auditors Ernst & Young flagged concerns over the group’s ability to continue operating due to uncertainty around its planned asset sales.

At the time, Capital A assured investors that its restructuring plan is on track for completion by June 2025. It said that AirAsia X’s private placement was nearly done, led by a sovereign wealth fund and that most lender approvals have been secured.

AirAsia X’s share price closed 2.33% lower at RM1.68 on Friday, giving it a market capitalisation of RM751.1 million. Capital A’s share price, meanwhile, closed down 2.3% to 85 sen, valuing it at RM3.7 billion.