KUALA LUMPUR: AirAsia X Bhd and Capital A Bhd have agreed to extend the completion of the proposed RM6.8 billion acquistion of AirAsia Aviation Group Ltd and AirAsia Bhd by the former.
The deadline had been extended by two months, according to a statement by AirAsia Group today.
The mutually agreed extension moves the completion deadline to March 24, from the original date of Jan 25, in order to allow both companies to finalise the deal.
Capital A chief executive officer Tan Sri Tony Fernandes said the extension provides the time needed to finalise all aspects of the transaction with precision.
This includes obtaining consent from the lessors, which is primarily done, and receiving the earliest date (by end February) from the High Court of Malaya.
"Once the court approves the arrangement, we will swiftly move to complete the placement, which is already in advanced discussions," he added.
In a separate statement, AirAsia X CEO Benyamin Ismail said the extension is a pragmatic step to ensure all aspects of the exercise are thoroughly and meticulously addressed.
During the period, AirAsia X will also finalise the definitive terms with identified investors for the proposed private placement, aimed at raising gross proceeds of RM1 billion, he said.
All due diligence processes for both entities had been successfully finalised, the company.
This exercise is intended to help Capital A exit Practice Note 17 status, which it fell into in 2022.
Shareholders of both AirAsia X and Capital A approved the merger of the latter's short-haul airline business into the former in October last year.
Shares in Capital A ended one sen or 1.07 per cent lower at 92.5 sen today, valuing the company at RM3.99 billion.
AirAsia X shares dropped eight sen or 4.26 per cent to RM1.80 for a market capitalisation of RM804.73 million.