Malaysia-headquartered Capital A is set to complete the sale of its aviation business to sister company AirAsia X by December.
The updated target comes after the company “resolved a major hurdle” in relation to clinching approvals from the Thai Securities and Exchange Commission (SEC) for the divestment of the AirAsia Group, which has units in Malaysia, Thailand, Indonesia, the Philippines and Cambodia.
Medium-haul operator AirAsia X states in a filing that a “key condition” in Thai securities regulations has been waived, paving the way for the transaction to proceed.
Capital A is looking to sell its aviation business to sister unit AirAsia X, as part of efforts to restructure its business and exit financially distressed status. The deal – first announced in early 2024 – will eventually see AirAsia and AirAsia X managed under a single entity, with a combined fleet of Airbus A320-family narrowbodies and A330s.
In August, it had disclosed a target of November for the divestment, pending Thai SEC approvals.
With the Thai regulatory hurdles cleared, the remaining steps in the transaction include capital reduction and distribution, allotment of shares, as well as the listing of shares.
Thereafter, Capital A will apply to the Malaysian stock exchange for the uplifting of its financially distressed status, marking the end of its business restructuring.
The move “will enable Capital A to fully focus on scaling its high-growth businesses under its group”, which include MRO, logistics, F&B, as well as fintech ventures.
