Tony Fernandes Combines All Airlines As AirAsia Group

Tony Fernandes (Photo: Antara)

Capital A announced the merger of all airlines into the AirAsia Group through the signing of a conditional sale and purchase agreement for divestment and strategic acquisition of the AirAsia Group.

CEO of Capital A and Advisor Tony Fernandes said today's announcement is more than just a transaction, but it is an opportunity to increase AirAsia Group's aviation business to the next level, as well as encourage growth and profitability in all non-airline core business portfolios for Capital A.

"This divestment facilitates a clear distinction between Capital A's main business portfolio, aviation groups, digital businesses, and logistics plus flight services to optimize synergies between entities and provide greater value for all stakeholders," Tony said, quoting Antara.

Tony said that combining all AirAsia airlines under one umbrella had been planned for a long time. The main goal is to open and realize value for shareholders.

"We have established five large companies, namely aviation, logistics, digital businesses, aviation services, and intellectual property businesses, all of which are of enormous value and enormous potential. I am sure they will develop into the next AirAsia, which realizes value and innovation," Tony said.

The AirAsia Aviation Group Limited (AAAGL) divestment, which consists of AirAsia's subsidiary in Thailand, Indonesia, the Philippines and Cambodia, will be fulfilled through the issuance of AirAsia Group's new shares to Capital A worth 3 billion ringgit.

After this divestment, Capital A will soon distribute new shares of the AirAsia Group worth 2.2 billion ringgit to shareholders of Capital A. Furthermore, after the completion of the divestment plan and proposal for AirAsia X, Capital A is expected to retain 18.39 percent of the AirAsia Group's enlarged shares.

AirAsia Berhad divestment or known as AirAsia Malaysia, worth 3.8 billion ringgit will be repaid by the assumption of AirAsia Group for Capital A debt of 3.8 billion ringgit to AirAsia Berhad.

In addition, post-divested, Capital A will maintain four high-growing core businesses and focus on aviation, including Capital A Aviation Services, Teleport, MOVE Digital, and Capital A International. Everything is ready for sustainable growth and diversification.