SEPANG (June 23): AirAsia X Bhd (KL:AAX) chief executive officer Benyamin Ismail said the aviation group’s RM1 billion private placement is being finalised and still slated for completion by end-July.

“It’s getting there, nearly there. Insya-Allah (God-willing) [by end-July] that’s the target internally for us, so we’ll see how it goes,” Benyamin told the press following AAX’s launch of a new route to Tashkent, Uzbekistan, on Monday (June 23).

The private placement is part of AAX and sister company Capital A Bhd’s (KL:CAPITALA) planned aviation business restructuring deal, which involves AAX buying AirAsia Aviation Group for RM3 billion and AirAsia Bhd for RM3.8 billion.

The restructuring deal's deadline was previously set for completion by end-May but was extended by two months to July 31, for AAX to finalise the terms of its RM1 billion private placement, and secure approval from authorities, lenders and other parties.

The restructuring forms a key part of Capital A’s regularisation plan to exit Practice Note 17 (PN17) status.

Back in May, Capital A CEO Tan Sri Tony Fernandes confirmed that the lead investor in AAX’s cash call would be a sovereign wealth fund, but stopped short of identifying them.

Earlier this year, Bloomberg reported that Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), was set to take up US$100 million (RM427.5 million) of the placement.

On AAX’s flights to the Middle East — namely Jeddah and Madinah, Saudi Arabia — there has been “no impact” from heightened tensions in the region, with flights operating as usual, said Benyamin.

Over the weekend, the US bombed three nuclear sites in Iran as it joined the fray in the Iran-Israel conflict. At the time of writing, Brent was up 0.09% to US$77.08 per barrel.

On Monday, AAX announced a new route to Tashkent, the capital of Uzbekistan, in its continued expansion into Central Asia — a market Benyamin says the group sees as underserved. It began flying to the region in early 2024 with its route to Almaty, Kazakhstan.

“We have seen a strong and growing demand for Central Asia following our successful Almaty route, and our vision is to create a comprehensive network that supports regional development and also connects people to these less-explored destinations whilst creating unforgettable travel experiences along the way,” Benyamin said.

The group is to begin flying the Tashkent route in October this year, with an initial three flights per week, which it can ramp up to seven, depending on demand.

Shares in AAX ended four sen or 2.55% lower at RM1.53 on Monday, valuing the group at RM684.02 million.