Malaysia's Capital A aims to raise $400 mln equity from AirAsia merger (updated)

Aetherium Acquisition

26/02/2024 08:26

* 
      Capital A to raise up to $400 mln from planned airline
merger -
CEO 
    

        * 
      Airline merger aimed at completion in July - CEO
    

        * 
      CEO says aviation industry in "best period" post-pandemic
    

  
 (Recasts paragraph 1, details on bourse classification in
paragraphs 5 and 6, industry forecasts in paragraphs 7, 8)
    By Danial Azhar
       KUALA LUMPUR, Feb 26 (Reuters) - 
    The parent company of Malaysian budget airline AirAsia,
Capital A Berhad  CAPI.KL , is looking to raise up to $400
million in equity as part of a planned merger to bring its long
and short-haul operations under one brand, its CEO said on
Monday.
    Group Chief Executive Tony Fernandes in an interview said
that would be on top of a $200 million bond-raising the company
is hoping to conduct in the next few weeks, as it awaits
regulator and shareholder approval to complete the sale of its
aviation business to long-haul unit AirAsia X Bhd  AIRX.KL . 
     The proposed deal, announced last month, would see the
formation of a single airline AirAsia Group, he said.
    "(We hope) the acquisition by AirAsia X of Capital A
aviation assets will be done by June and July," Fernandes told
Reuters.
    Fernandes did not provide details on what the financing
would be used for.
    Both Capital A and AirAsia X have undergone restructuring
after being classified by Malaysia's stock exchange as 
    financially distressed, due to strict pandemic travel
restrictions. 
    AirAsia X was 
    removed
     from the classification in November, after undertaking
measures to improve its financial position, while Capital A has
said it hopes to present a plan to the bourse by June.
  
        Fernandes said the aviation industry was currently
experiencing its "best period", with greater room to expand
routes amid an industry-wide supply crunch and fewer
competitors. 
    "We feel really confident about the future," he said.
     Fernandes said he hoped to eventually list all of the
group's remaining non-aviation businesses, which include mobile
payments firm BigPay, logistics arm Teleport, and online travel
agency AirAsia MOVE.
    Last year, the company also said it plans to list its brand
management unit in the United States 
    via
     a merger with special purpose acquisition company,
Aetherium Acquisition Corp  GMFI.O . 
  
         
  
         
  
        
  
     

 (Reporting by Danial Azhar, Editing by Louise Heavens)
 ((danial.azhar@thomsonreuters.com ; Twitter: https://twitter.com/dan_azh
 ;;))