Malaysia-headquartered Capital A Bhd, the investment holding company of AirAsia, airasia MOVE (formerly known as airasia Superapp), logistics venture Teleport, and Capital A aviation services group, announced on Wednesday 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, for a proposed business combination merger with Capital A International, to be incorporated.
With 100 percent 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.
The proposed business combination will be at an indicative equity value of $1 billion based on an independent valuation of the AirAsia Brand.
“Our proposed business combination with Aetherium serves as a testament to the growth opportunity ahead. The Asean region in recent years has emerged as one of the world’s most dynamic and fastest growing economic hubs. Yet, there are limited vehicles for which global investors can participate in the vibrancy of this pivotal market. Leveraging the strength and reach of the AirAsia brand, Capital A International will offer an exceptional opportunity to harness the investment potential of the region.”
Jonathan Chan, CEO of Aetherium Acquisition Corp said, “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 finalising the business combination agreement in the weeks to come.”
A detailed announcement will be made upon the signing of a definitive agreement for the Proposed Business Combination, Capital A said.