KUALA LUMPUR, Nov 1 — Capital A Bhd has entered into a letter of intent (LOI) with Aetherium Acquisition Corp, a special purpose acquisition company listed on the Nasdaq stock exchange, for a proposed business merger with Capital A International.
In a statement today, Capital A said the proposed business combination would result in Capital A International becoming a standalone publicly traded company in the United States.
“With 100 per cent equity interest in AirAsia brand and leasing, Capital A International intends to generate revenue from brand royalty and the leasing of aircraft.
“Additionally, it will be involved in tactical acquisition, incubation and partnerships to provide platforms for entrepreneurs,” Capital A said, adding that the proposed business combination will be at an indicative equity value of US$1 billion (RM 4.7 billion).
Under the terms of the LOI, Capital A said it plans to divest all issued and outstanding share capital of Capital A International and that a detailed announcement will be made upon the signing of a definitive agreement for the proposed business combination.
Capital A chief executive officer (CEO) Tan Sri Tony Fernandes said the company is taking the first step to venture out of Asean and exploring listing on the pinnacle of markets in terms of capital raising.
“We are confident that the exposure of the US 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.
“Our proposed business combination with Aetherium serves as a testament to the growth opportunity ahead,” he said.
Aetherium Acquisition Corp CEO Jonathan Chan said 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.
Meanwhile, the Malaysia Competition Commission (MyCC) has failed in its application to review the Federal Court’s previous decision in refusing to give the regulatory body leave to pursue its appeal to reinstate RM10 million fines imposed on Malaysia Airlines (MAS) and Capital A’s unit, AirAsia Bhd, for breaching a market-sharing prohibition.
The Federal Court concluded that MyCC had failed to meet the threshold to review under rule 137 of the Federal Court Rules 1995 and unanimously dismissed the review application with cost for the amount of RM50,000 being awarded to AirAsia Bhd and MAS each.
“With the dismissal of the application, MyCC’s decision which carried a RM10 million fine against AirAsia Bhd remains overturned,” Capital A said in a filing with Bursa Malaysia today. — Bernama
