02/11/2023 (Kuala Lumpur, Malaysia) - Capital A Bhd has signed a letter of intent with Aetherium Acquisition Corp, a Special Purpose Acquisition Company (SPAC) listed on the Nasdaq, for a proposed business combination that would establish Capital A International.
The proposed merger values the equity at a suggested $1 billion, based on an independent assessment of the AirAsia brand. This move will result in the creation of Capital A International, a new investment and strategic development company capitalizing on the AirAsia brand. It aims to leverage core capabilities in aviation, travel, hospitality, and digital technology, establishing it as a standalone public company in the United States.
In a statement, Capital A outlined that with full equity interest in the AirAsia Brand and AirAsia Leasing, Capital A International intends to generate income through brand royalties, aircraft leasing, and aviation consulting and management service fees. Furthermore, the company will engage in strategic acquisitions, incubations, and partnerships to provide a platform for entrepreneurs.
Capital A, the investment holding company of AirAsia, includes airasia MOVE (formerly known as airasia Superapp), logistics business Teleport, and a group of aviation service companies.
Tan Sri Tony Fernandes, CEO of Capital A, described the proposal as a transitional era for the company, which has evolved from an airline into a value-oriented low-cost travel and aviation services group encompassing five entities, with Capital A International set to be the first to enter the public market.
"We are taking initial steps to explore foreign markets, particularly ASEAN, and to delve into listings in top capital-generating markets. We believe that exposure to the US financial markets and a listing on Nasdaq will enable us to accelerate our strategy delivery while enhancing access to capital, expanding our shareholder base, and boosting our global profile," said Fernandes.
Fernandes expressed confidence in the proposed business combination with Aetherium as evidence of future growth opportunities. He highlighted the ASEAN region's emergence as a dynamic and fast-growing economic hub and the limited opportunities for global investors to participate in this significant market. Capital A International aims to exploit this investment potential by leveraging the strength and reach of the AirAsia brand.
Under the terms of the letter of intent, Capital A plans to divest its entire issued and outstanding shares for Capital A International. The collaboration with Aetherium Acquisition Corp reflects a shared interest in this potential partnership, subject to necessary regulatory approvals and conditions from the stock exchange, Bank Negara Malaysia (BNM), and relevant authorities.
Capital A reaffirms its commitment to adhering to regulatory requirements and is optimistic about the potential benefits of the proposed business combination. Detailed announcements will be made following the finalization of the agreement for the Business Combination Proposal, Capital A stated.