Capital A Berhad, the investment holding company of AirAsia, Airasia Move, Teleport and Capital A aviation services group, signed a letter of intent with Nasdaq-listed Aetherium Acquisition Corp. for a proposed business combination merger that will form Capital A International.
The proposed business combination would result in Capital A International becoming a standalone publicly-traded company in the United States, leveraging the “AirAsia” brand and capitalizing on core capabilities in aviation, travel and hospitality and digital technologies.
Capital A International will generate revenue from brand royalty and aircraft leasing and tactical acquisition, incubation, and partnerships to provide platforms for entrepreneurs. The proposed business combination will be at an indicative equity value of $1 billion based on an independent valuation of the AirAsia Brand.
Capital A chief executive Tony Fernandes said this is a coming-of-age moment for the company, which has morphed from AirAsia into a low-cost, value-driven aviation and travel services group in five entities.
“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,” he said.
Aetherium Acquisition CEO Jonathan Chan expressed his privilege to work with Fernandes to bring Capital A International to the U.S. capital markets.
Under the terms of the LOI, Capital A plans to divest all issued and outstanding share capital of Capital A International. The LOI with Aetherium Acquisition reflects a mutual interest in the potential collaboration, subject to regulatory approvals and conditions from Bursa Securities, the Central Bank of Malaysia and other relevant authorities.