KUALA LUMPUR: AirAsia X (AAX) has received support from its shareholders for the planned acquisition of Capital A Bhd's stake in the aviation business within AirAsia Aviation Group Limited (AAAGL) and AirAsia Bhd (AAB) for RM6.8 billion.
During today's extraordinary general meeting (EGM), 99.08 per cent of shareholders voted in favour of the proposal, indicating strong support for AAX.
"This pivotal decision clears the path for AAX's transformative acquisition which is expected to be completed by the end of the year as an enlarged aviation group, subject to final court and regulatory approvals."
"Additionally, shareholders voted in favour of the resolutions for the proposed issuance of free warrants, proposed private placement to raise gross proceeds of RM1 billion, proposed share capital reduction and proposed granting of subscription shares," the statement said.
AAX chairman Datuk Fam Lee Ee said the approval from shareholders marks a pivotal moment for the company.
"This acquisition will give us access to over 200 existing aircraft and 361 future aircraft order books from Capital A's aviation portfolio, combining both narrow-body and wide-body aircraft into a unified group, enabling us to expand our reach across long, medium, and short-haul segments."
"With this enhanced fleet, we can operate more efficiently, offer better service to our guests, and strengthen our competitive position in key markets," he added.
He said the company's focus now is on sustainable expansion and innovation, driving greater value for guests and shareholders.
"As we move into this exciting new chapter, the enlarged aviation group is poised to capture even more growth opportunities and build a more sustainable business model for the decades ahead," Fam added."
"We extend our gratitude to our shareholders for their strong validation of our growth plans moving forward.
"This acquisition positions us on the brink of a transformative shift at AirAsia, uniting medium and short-haul operations into a powerful low-cost carrier network that will bring the world to Asean and Asean to the world," AAX chief executive officer Benyamin Ismail.
On Oct 14, 2024, Capital A shareholders' approved the proposed disposal of the company's aviation business to AirAsia X.
AirAsia X's share price was up 4 per cent to RM1.80, while Capital A's share price was up 4.28 per cent to 97.5 sen at midday break.