KUALA LUMPUR: Capital A Bhd on April 25, 2024 entered into conditional share agreements with AirAsia Group Sdn Bhd (AAG) to dispose of AirAsia Aviation Group Limited (AAGL) and AirAsia Bhd (AAB) for RM6.8 billion, in a related party transaction.
The proposed deals will be satisfied via issuance of 2.3 billion new AAG shares to Capital Aand AAG assuming RM3.8 billion debt due to AAB.
On Jan 8, 2024, Capital A entered into a non-binding letter of offer with AirAsia X Bhd (AAX) for the disposal of AAGL and AAB.
As part of AAX proposed internal reorganisation, AAG will assume the listing status of AAX prior to the completion of the proposed disposals.
Capital A also announced that it proposes to distribute some 2.2 billion worth of new AAG shares it receives as payment, to the entitled shareholders of the company by way of distribution-in-specie via a reduction and repayment of the company's share capital pursuant to Section 116 of the Companies Act 2016.
Capital A's share price closed unchanged at 70 sen a share yesterday, giving it a market capitalisation of almost RM3 billion.
AAX's shares also closed unchanged at RM1.21 a share, giving it a market capitsalisation of almost RM541 million.
