AirAsia X Berhad has received approval from Bursa Malaysia for the listing and quotation of shares linked to its MYR6.8 billion(USD1.58 billion) acquisition of Capital A’ aviation operations. This event followed Bursa Malaysia’s positive start to the week which raised 8.7 points to 1660. This development highlights the importance of AirAsia’s approval during this timeframe. As part of the acquisition strategy, AirAsia X will absorb Capital A’s equity stakes in AirAsia Berhad, the main operator of the low-budget carrier AirAsia, and AirAsia Aviation Group limited. The latter operates several airlines such as AirAsia Cambodia, Indonesia AirAsia, AirAsia Philippines, and Thai AirAsia. This strategic move will lead to an ambitious shareholder’s meeting within the next 21 days with AirAsia X aiming to complete the acquisition by the end of the year.
More about the investment
Thus, the proposed acquisitions will unify the various AirAsia carriers under AirAsia’s X brand. This fact will lead to financial progress and aviation dominance in the area. Capital A’s shares increased to 76 sen which rates the group at RM3.27 billion. AAX shares also rose to 3 sen resulting in a market capitalization of RM586 million. More particularly, AirAsia X Chairman Fam Lee Ee said:
“This strategic move is set to strengthen our market position and streamline AirAsia operations across the region.Our shareholders stand to benefit significantly from this acquisition. The enlarged entity is expected to deliver improved financial performance, with increased revenue streams and cost savings from integrated operations.”
Air Asia’s dominance in the Asian Market
It is worth mentioning that the member Air Asia’s group Thai Air Asia noted progress amid its contract with the Air Asia X group. It confirms that it will continue offering new routes to and from Bangkok through the main airports of Don Mueang and Suvarnabhumi. AirAsia since recently is operating four routes out of Suvarnabhumi Airport with daily flights to the cities of Chiang Mai, Phuket, Krabi and Hat Yai corresponding to the increasing demands by operating in total 34 domestic routes and 113 flights daily. Thus, the approval of the Bursa Malaysia marks an outstanding opportunity for the AirAsia airlines to dominate in the global market. Will this agreement serve as an example for airlines to increase their financial status and be more competent? For more exciting news about AirAsia click the link below.
