KUALA LUMPUR: Capital A Bhd's plan to dispose of its aviation business to AirAsia X Bhd will take longer than expected, with both agreeing to extend the negotiation period for the deal until April 15, 2024.
The two companies in a filing with Bursa Malaysia Securities Bhd said they have mutually agreed to extend the negotiation period to execute the definitive agreement for the proposed acquisitions to April 15, 2024.
Capital A Bhd plans to dispose of its entire stakes in AirAsia Bhd and AirAsia Aviation Group Limited (AAAGL) to AirAsia X, for a sum to be agreed upon, as part of a business realignment strategy.
AirAsia operates passenger airine services in Malaysia while AAAGL does the same through its subsidiaries from Thailand, Indonesia, Philippines and Cambodia.
AirAsia X provides mid-range air transportation services.
Capital A's aviation business includes;
(i) aviation maintenance, repair and overhaul segment carried out by Asia Digital Engineering Sdn Bhd, a wholly-owned subsidiary of the company;
(ii super app segment carried out by AirAsia SuperApp Sdn Bhd, a 96.19 per cent subsidiary of the company;
(iii) logistics segment carried out by Teleport Everywhere Pte Ltd, a 77.56 per cent subsidiary of the company; and
(iv) digital payments segment carried out by BigPay Pte Ltd, a 99.56 per cent subsidiary of the company.