AirAsia owner Capital A says $226 million private placement is 'done'

Reuters

Sun, Mar 9, 2025, 10:23 PM 2 min read

KUALA LUMPUR (Reuters) - A backstage placement to rise 1 cardinal ringgit ($226 million) by Malaysia's Capital A, proprietor of fund hose AirAsia, was "done", Group CEO Tony Fernandes said connected Monday, arsenic the institution edges person to completing a reorganisation plan.

"We person a 1 cardinal (ringgit) placement, wherever determination has been assorted stories, but I tin corroborate that it's done," Fernandes said astatine a property league connected Monday, declining to remark further.

Bloomberg past week reported Saudi Arabia's sovereign wealthiness money was acceptable to put $100 cardinal successful AirAsia, with the steadfast besides successful discussions with imaginable investors from Singapore and Japan.

AirAsia was founded successful 2001 with 2 craft and has since go 1 of Asia's largest fund hose operators.

Parent institution Capital A was hard deed by pandemic question restrictions and classified by Malaysia's banal speech arsenic PN17, oregon financially distressed. It is seeking to exit PN17 presumption to support its banal speech listing.

On Friday, Capital A said Malaysia's banal speech had approved its program to exit PN17 status, which Fernandes said connected Monday could beryllium achieved by May.

That would let the institution to merchantability its AirAsia aviation concern to long-haul portion AirAsia X, which it announced a twelvemonth agone successful a determination to consolidate agelong and short-haul operations nether a azygous AirAsia brand.

Before that tin beryllium completed, Capital A's shareholders request to o.k. the program to exit PN17 presumption and Malaysia's precocious tribunal has to o.k. Capital A's planned superior reduction. Capital A besides has to show 2 profitable quarters, Fernandes said.

"Already the 4th fourth we were profitable, and we are looking astatine our forecast, Capital A volition beryllium precise profitable successful the archetypal quarter. So we deliberation by May, Capital A volition beryllium retired of PN17 fully," Fernandes said.

Capital A plans to clasp 18% of the resulting AirAsia hose group, and the group's non-aviation businesses, which see logistics steadfast Teleport and craft attraction institution Asia Digital Engineering.

($1 = 4.4160 ringgit)

(Reporting by Lisa Barrington successful Seoul and Danial Azhar successful Kuala Lumpur; Editing by Jamie Freed)