AirAsia X now targets year-end completion of AirAsia Aviation acquisition

AirAsia X is aiming to complete the acquisition of sister company AirAsia Aviation by December, as both companies eye a “new era” following its completion. AirAsia X, the medium-haul, low-cost operator, submitted to the Malaysian stock exchange its draft circular detailing its proposed acquisition plan. Similarly, Malaysia-headquartered Capital A, which is the parent of AirAsia Aviation, has also submitted to Bursa Malaysia its plans to dispose of its shareholding in its airline business. An extraordinary general meeting must be convened within 21 days of the exchange’s approval, where shareholders will vote on whether or not to green-light the acquisition. The deal, which was first announced in January and confirmed in April, is valued at around MYR6.8b ($1.49b). The new acquisition timeline is a slight delay from earlier-disclosed plans, which state that the acquisition will be completed by September. To speed up the process, AirAsia X says it has nixed its own reorganisation plans, and will undertake the acquisition directly. It is likely the newly formed AirAsia Group will retain both brands for now, though there are plans to eventually merge into a single AirAsia brand. Capital A says the move to divest its aviation business is part of its “strategic plan to streamline its operations and concentrate on specialised areas supplementary to the aviation business”. <br/>