Capital A Berhad, the investment holding company encompassing AirAsia, airasia MOVE (formerly known as airasia Superapp), logistics venture Teleport, and Capital A aviation services group, has revealed that it has entered into a Letter of Intent (“LOI”) with Aetherium Acquisition Corp. a Special Purpose Acquisition Company (“SPAC”) listed on the NASDAQ stock exchange, intending to merge with Capital A International, a new entity to be incorporated for this purpose.
This proposed business combination marks a strategic move by Capital A Berhad, aiming to establish Capital A International as a standalone publicly traded company in the United States. The company will harness the well-known “AirAsia” brand and capitalize on its core competencies in aviation, travel, hospitality, and digital technologies. Capital A International will hold a 100% equity interest in AirAsia Brand and Leasing, with the primary objective of generating revenue through brand royalty and aircraft leasing. The company will also actively participate in strategic acquisitions, incubation initiatives, and partnerships to foster entrepreneurial platforms.
The indicative equity value of this proposed business combination is estimated to be around US$1 billion, based on an independent valuation of the AirAsia Brand.
“This is a coming-of-age moment for Capital A, which has morphed from AirAsia into a low-cost, value-driven aviation and travel services group in five entities, the first of which that’s coming to the public market would be Capital A International. We are taking the first step to venture out of our home ground, which is ASEAN, and exploring listing on the pinnacle of markets in terms of capital raising. We are confident that the exposure to the U.S. financial markets and Nasdaq listing would help us accelerate the delivery of our strategy as we improve access to capital, broaden our shareholder base and meaningfully raise our profile globally,” according to Tony Fernandes, CEO of Capital A.
Under the terms of the LOI, Capital A intends to divest all issued and outstanding share capital of Capital A International. However, the execution of the proposed business combination is contingent on the necessary regulatory approvals and conditions from Bursa Securities, the Central Bank of Malaysia, and other relevant authorities. Capital A Berhad remains committed to adhering to all regulatory requirements and is optimistic about the potential advantages of this strategic move.
“It is a privilege to be working with a storied entrepreneur such as Tony Fernandes to help bring Capital A International to the U.S. capital markets. AirAsia has had a transformative impact on the lives of tens of millions of people across Southeast Asia, making affordable air travel a reality. The AirAsia brand is associated with innovation, convenience, adventure, and value. This new entity will present investors with the opportunity to tap into the growth of the ASEAN region with a high-quality profitable asset and exceptional management team. We look forward to finalizing the business combination agreement in the weeks to come,” said Jonathan Chan, CEO of Aetherium Acquisition Corp.
A comprehensive announcement will be made once a definitive agreement for the Proposed Business Combination is signed. The business world eagerly awaits the outcome of this significant development in the coming weeks.