Capital A Finalizes Aviation Business Sale to AirAsia X

Capital A has completed the disposal of its aviation business to AirAsia X (D7, Kuala Lumpur International), finalising a restructuring designed to consolidate the group's airline operations under one umbrella. It also reduced its direct stake in the long-haul operator by 3.8 points as part of corporate adjustments. According to a Bursa Malaysia filing, Capital A's disposal of AirAsia Aviation Group and AirAsia concluded on January 16. The transaction was settled via the issuance of approximately 2.3 billion AirAsia X shares to Capital A and its shareholders, along with AirAsia X assuming MYR3.8 billion Malaysian ringgit (USD937.2 million) in debt owed by Capital A to AirAsia Berhad. AirAsia Aviation Group is the vehicle for all non-Malaysian joint ventures using the AirAsia brand. Concurrently, AirAsia X completed a private placement on January 16, issuing 606 million new shares to raise MYR1 billion (USD246.6 million). Both the consideration shares and placement shares were listed on January 19. Separately, Capital A disclosed in a January 14 filing that it sold 17 million AirAsia X shares that day for MYR28.1 million (USD6.9 million). The sale, executed at MYR1.65 (USD0.4) per share, reduced Capital A's direct interest from 12.77% to 8.96%. The group stated the reduction was necessary to ensure that it and persons acting in concert keep their collective shareholding below the 33% mandatory takeover threshold. While Capital A remains a minority shareholder in AirAsia X, its main corporate focus will henceforth be on non-aviation businesses. Capital A CEO Tony Fernandes termed the completion "the most challenging chapter" in the firm's history, noting it allows the company to focus on exiting its Practice Note 17 financial distress status.