KUALA LUMPUR: AirAsia Group parent Capital A Bhd plans to merge Capital A International with Aetherium Acquisition Corp and list the combined entity on Nasdaq.
Capital A said it had signed a Letter of Intent (LoI) with Aetherium for the proposed business combination.
This will result in Capital A International, a new investment and strategic development company, becoming a standalone publicly traded firm in the US.
It will leverage the "AirAsia" brand and capitalise on core capabilities in aviation, travel and hospitality and digital technologies.
With 100 per cent stake 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 US$1 billion based on an independent valuation of AirAsia Brand.
Capital A chief executive officer Tan Sri Tony Fernandes said it is taking the first step to venture out of its home ground, which is Asean, and exploring listing on the pinnacle of markets in terms of capital raising.
The exposure of the US financial markets and Nasdaq listing will help Capital A accelerate the delivery of its strategy.
"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," he said.
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 reflects a mutual interest in the potential collaboration, subject to necessary regulatory approvals and conditions from Bursa Malaysia, Bank Negara Malaysia and other relevant authorities," it said.