AirAsia X has been allowed more time to complete its acquisition of the AirAsia group of airlines, as it finalises the terms of a fundraising deal.
Airline chief Benyamin Ismail says AirAsia X reached a mutual agreement with AirAsia parent Capital A for a two-month extension, calling it a “pragmatic step” to ensure “all aspects” of the deal are “thoroughly and meticulously” addressed.
The airline will also “finalise the definitive terms” for a proposed private placement – raising MYR1 billion ($228 million) in gross proceeds – with identified investors.
AirAsia X shareholders in October backed the carrier’s acquisition of AirAsia, days after Capital A shareholders did likewise.
Capital A first announced the divestment plan in January, as part of efforts to restructure its business and exit its financially-distressed status.
The deal will see AirAsia and AirAsia X managed under a single entity, with a combined fleet of Airbus A320-family narrowbodies and A330s, as well as an “enhanced network” spanning short- and medium-to-long-haul destinations.
