At a glance
- Company
- AirAsia X
- Announcement
- Acquisition
- Location
- Sepang
People
- Dato’ Fam Lee EeChairman of AirAsia X
Products and programs
SEPANG, September 19, 2024 -- AirAsia X (AAX or the Company) has announced that the Company has obtained clearance from Bursa Malaysia Securities Berhad (Bursa Malaysia) for the Extraordinary General Meeting (EGM) Circular for shareholders detailing the proposed acquisition of Capital A Berhad’s aviation business. This brings the Company closer to completing the acquisition of AirAsia Aviation Group Limited and AirAsia Berhad to form a new aviation group.
Following this approval, AAX will convene an EGM in approximately three weeks’ time from the date of despatch of EGM Circular, at a date to be announced soon, where shareholders’ approval will be sought for the Proposed Acquisition.
Bursa Malaysia’s clearance of the circular and related share listings represents a pivotal step towards the completion of this transformative acquisition. Once finalised, the new aviation group will operate with a more streamlined structure, enhanced market reach, and improved operational synergies, driving long-term growth, profitability, and increased returns for shareholders.
Dato’ Fam Lee Ee, Chairman of AirAsia X said: “Bursa Malaysia’s clearance marks a pivotal milestone as we move closer to finalising this transformative acquisition. By integrating AirAsia’s extensive network with AAX’s medium-haul capabilities, we are set to unlock significant synergies that will not only streamline our operations but are projected to increase revenue and reduce operating costs. This acquisition is a strategic step that positions us to capture greater market share in the region and drive sustainable growth.
“The upcoming EGM will be a critical opportunity for our shareholders to shape the future of AAX. We are excited about the prospects that this acquisition will bring, enabling us to create a more robust and efficient airline group that meets the evolving needs of our guests while enhancing shareholder returns.”
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In brief
AirAsia X says Bursa Malaysia has cleared the circular for its proposed acquisition of Capital A Berhad’s aviation business. The deal involves acquiring AirAsia Aviation Group Limited and AirAsia Berhad to form a new aviation group. After the circular is sent to shareholders, the company plans to hold an extraordinary general meeting in approximately three weeks; the meeting date has not yet been announced. Shareholder approval will be sought for the proposed acquisition. Chairman Dato’ Fam Lee Ee says the combination is expected to bring together AirAsia’s network and AirAsia X’s medium-haul capabilities, with projected operational efficiencies, revenue gains and lower operating costs. The company also says the planned group structure is intended to broaden market reach and support growth and shareholder returns.
Key takeaways
- Bursa Malaysia cleared the shareholder circular for AirAsia X’s proposed aviation acquisition.
- The proposal covers AirAsia Aviation Group Limited and AirAsia Berhad, which would form a new aviation group.
- AirAsia X plans to hold an EGM approximately three weeks after the circular is sent to shareholders.
- Shareholder approval is still required for the proposed acquisition.
Earlier from AirAsia X
- AirAsia X wins Best International Airline of the year at the Australian Aviation Awards 2024
- AirAsia X reconnects Kuala Lumpur and Chongqing - the largest municipality in the world
- AirAsia X enters next phase of acquiring Capital A’s aviation business to accelerate expansion as a leading airline
- AirAsia X commemorates its maiden flight to Changsha, China’s Top Tourist City
- AirAsia X commemorates resumption of Xi’an-Kuala Lumpur route
