Capital A to list on Nasdaq via SPAC deal

KUALA LUMPUR: Capital A Bhd has entered into a letter of intent (LOI) with Aetherium Acquisition Corp (GMFI), a special purpose acquisition corporation (SPAC) listed on the Nasdaq in the United States.

In a statement, Capital A said under the deal, Aetherium Acquisition will acquire all the issued and outstanding share capital of Capital A International, resulting in the formation of a new listed entity.

Capital A said the proposed business combination will be at an indicative equity value of US$1bil based on an independent valuation of the AirAsia Brand.

“This is a coming-of-age moment for Capital A, which has morphed from AirAsia into a low-cost, value driven aviation and travel services group in five entities, the first of which that’s coming to the public market would be Capital A International. We are taking the first step to venture out of our home ground, which is Asean, and exploring listing on the pinnacle of markets in terms of capital raising.

“We are confident that the exposure of 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,” Capital A CEO Tan Sri Tony Fernandes said.

“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.”

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 Corp reflects a mutual interest in the potential collaboration, subject to necessary regulatory approvals and conditions from Bursa Securities, Bank Negara and other relevant authorities.

Capital A remains committed to complying with all regulatory requirements and is optimistic about the potential benefits of the proposed business combination, it said.