Capital A Berhad announced that it has mutually agreed with AirAsia X Berhad (AAX) to extend the cut-off dates for the completion of the proposed disposal of AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB) to AAX.

The announcement was made on Monday, January 27.

The timeline has been extended by two months, from January 25 to March 24, allowing both parties additional time to finalize the transaction for AAAGL and AAB. Notably, all due diligence for both entities has already been successfully completed.

This extension ensures that both parties have adequate time to fulfill the necessary conditions and finalize the transaction. All other terms and conditions of the SSPAs remain unchanged.

Considerable Progress

Capital A chief executive Tony Fernandes said: “We are encouraged by the progress we’ve made, and remain committed to ensuring everything is right on track. This extension provides the time needed to finalize all aspects of the transaction with precision, including obtaining consent from the lessors, which is primarily done, and receiving the earliest date from the High Court of Malaya. Once the court approves the arrangement, we will swiftly move to complete the placement, which is already in advanced discussions.”

With key milestones already achieved, including the completion of due diligence for both AirAsia Aviation Group and AirAsia Berhad, as well as the approval from shareholders of both Capital A and AirAsia X in October 2024, the parties are now in the final stage of negotiations.

Fernandes added: “Upon completion, this transaction will result in a stronger, globally competitive AirAsia, leveraging synergies between short-haul and long-haul operations to improve efficiency, profitability, and shareholder returns. It will also enhance connectivity and customer experience for our guests. This move unlocks significant growth opportunities, as it aligns with Capital A’s broader strategy to lead in the digital aviation and services space. Capital A is looking forward to accelerating the growth of our technology-driven aviation services and digital ecosystem, particularly in response to the anticipated global rise in travel demand.”