Posted by kyzertai > 2 months ago | Report Abuse

The new share list with rm1.30 then aax share 1 to 1 swap to new share ? The NewCo will then acquire Capital A's aviation business — AAB and AirAsia Aviation Group Ltd (AAAGL) — for RM6.8 billion. It will be issuing new shares worth RM3 billion in the NewCo — 2.31 billion shares at RM1.30 each — to acquire AAAGL.

Posted by Sslee > 2 months ago |

Post removed.Why?

Posted by Realrich > 2 months ago | Report Abuse

Buy aax and capitala go go fly today sure LU

Posted by Realrich > 2 months ago | Report Abuse

Go go today LU target price RM2

Posted by xiaoeh > 2 months ago | Report Abuse

why LU ha Realsifu?

Posted by Realrich > 2 months ago | Report Abuse

Become bigger airlines business is golden egg. Sure Limit up

Posted by xiaoeh > 2 months ago | Report Abuse

Noted and Thanks Realsifu

Posted by curiousq > 2 months ago | Report Abuse

Limit up ah? very good loh .... may you all wishes come true

Posted by Sslee > 2 months ago | Report Abuse

AAX will swap their shares in AAX with shares of the NewCo — Airasia Group Sdn Bhd — on a one-to-one basis.

The NewCo will then acquire Capital A's aviation business — AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) — for RM6.8 billion. It will be issuing new shares worth RM3 billion in the NewCo to acquire AAAGL, while it will acquire AAB for RM3.8 billion, to be satisfied by assuming RM3.8 billion of the RM3.83 billion worth of debt that Capital A owes AAB.

Currently AAX NOSH: 447 million.
It will be issuing new shares worth RM3 billion in the NewCo to acquire AAAGL. That will be how many billion of new shares? The current AAX shareholder will be diluted by how many time?

Posted by williamh > 2 months ago | Report Abuse

Like kopi-0 added unlimited water,it ended up water kopi,after that co will cancel the buying back shares Andy the water kopi will change back to Hennessy cher

Posted by Realrich > 2 months ago | Report Abuse

Buy 1.16 sale 1.26. Thanks Aax I earn 10k fast money

Posted by Lee Ying Yee > 2 months ago | Report Abuse

AAG will become asia air line king ????

Posted by Realrich > 2 months ago | Report Abuse

AAG is holding company. Aax is subsidiary company

Posted by curiousq > 2 months ago | Report Abuse

Dun believe too much what sifu said here ..... those has been in SKP resources knew

Posted by Realrich > 2 months ago | Report Abuse

I sold too fast omg

Posted by EngineeringProfit > 2 months ago | Report Abuse

hUAT ARRRRRRRRRRR

Posted by EngineeringProfit > 2 months ago | Report Abuse

jUST BOUGHT 1.26 .........HEHE

Posted by EngineeringProfit > 2 months ago | Report Abuse

Right After my capitalA jumps up

Posted by Sslee > 2 months ago | Report Abuse

AAX will swap their shares in AAX with shares of the NewCo — Airasia Group Sdn Bhd — on a one-to-one basis.

The NewCo will then acquire Capital A's aviation business — AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) — for RM6.8 billion. It will be issuing new shares worth RM3 billion in the NewCo to acquire AAAGL, while it will acquire AAB for RM3.8 billion, to be satisfied by assuming RM3.8 billion of the RM3.83 billion worth of debt that Capital A owes AAB.

Just a simple mathematic with debts from AAB RM 3.8 billion and billion debts inside AAAGL. Thus even with RM 1 billion new capital raise by NewCo (AAG) is that 1 billion enough for working capital and servicing total debts?

I am sure NewCo(AAG) will fall into PN17 company.
Stony end game is getting capA out of PN17 in the expense of NewCo (AAG).

Shark smell the blood and come in for the killing.

Posted by Realrich > 2 months ago | Report Abuse

Aax 1 on 1 convert AAG share? The max is RM1. 30. Now overvalued. lol I sale 1.26 is play safe

Posted by EngineeringProfit > 2 months ago | Report Abuse

I bought over from u....haha

1.26

Posted by xiaoeh > 2 months ago | Report Abuse

wah....
Realsifu always make money without fail

Posted by Realrich > 2 months ago | Report Abuse

Xiaoeh I morning buy call you not buy meh? I say don't miss the boat ah

Posted by Aldous47 > 2 months ago | Report Abuse

What made you buy it this morning, Realrich?

Posted by Realrich > 2 months ago | Report Abuse

Look at chart aax is in the lower price waiting a news come out high chance to fly. A little luck also lah I buy both capitala and aax together. So I not miss both boat

Posted by Sslee > 2 months ago |

Post removed.Why?

Posted by Sslee > 2 months ago | Report Abuse

Expected gain arising from the Proposed AAB Disposal
Based on the Company’s audited consolidated financial statements for the FYE 31
December 2022, the Proposed AAB Disposal is expected to result in a pro forma gain
on disposal of AAB upon completion of the Proposed AAB Disposal of approximately
RM6,071.45 million. The details of the pro forma gain arising from the Proposed AAB
Disposal is set out below:
RM’ million
AAB Disposal Consideration 3,800.00
Add: Net liabilities of AAB as at 31 December 2022 2,351.75
Less: Transaction costs for the Proposed AAB Disposal (4.30)
Less: Estimated capital gains tax (76.00)
Pro forma gain on disposal of AAB 6,071.45

The NewCo will then acquire Capital A's aviation business — AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) — for RM6.8 billion. It will be issuing new shares worth RM3 billion in the NewCo to acquire AAAGL, while it will acquire AAB for RM3.8 billion, to be satisfied by assuming RM3.8 billion of the RM3.83 billion worth of debt that Capital A owes AAB.

Newco issuing new shares worth RM3 billion in the NewCo to acquire AAAGL, and at the same time take over Net liabilities of AAAGL as at 31 December 2022 RM 1,801.00 million

Newco acquire AAB for RM3.8 billion, to be satisfied by assuming RM3.8 billion of the RM3.83 billion worth of debt and at the same time take over AAB Net liabilities of as at 31 December 2022 2,351.75 million.

Any suckers for RM 1.00 billion Newco PP?

Posted by xiaoeh > 2 months ago | Report Abuse

Posted by Realrich > 19 hours ago | Report Abuse
Xiaoeh I morning buy call you not buy meh? I say don't miss the boat ah

ai ya...
miss the boat...
anyway
congrats and thanks Realsifu...

Posted by xiaoeh > 2 months ago | Report Abuse

btw Realsifu
while we have inputs from SsLee sifu
may i know your thoughts also on this Tony's new move..?

Posted by Realrich > 2 months ago | Report Abuse

Xiaoeh I short term trade on aax. I agree with sslee for long term the new AAG will go to
pn17.

Posted by Realrich > 2 months ago | Report Abuse

AAG new ipo better don't touch

Posted by xiaoeh > 2 months ago | Report Abuse

Noted and Thanks Realsifu
and Thanks SsLee for sharing the clear facts and figures

Posted by ykyew11 > 2 months ago | Report Abuse

Sslee "sifu" has a track record of shitting on anything AirAsia, so no point asking him really. I think for a more unbiased perspective, you can take a look at what the various research houses have said, but Sslee will disagree and say that all the research houses are wrong and he is right despite not being a CFA himself.

Posted by Sslee > 2 months ago | Report Abuse

IBs only talk about capA.
And of cause the deal is a bail out for capA.


What will that Maybank analyst who gave a TP RM 3.40 will say about the deal and TP of AAX/Newco now?

Posted by Sslee > 2 months ago | Report Abuse

Source : MAYBANK
Stock : AAX Price Target : 3.40 | Price Call : BUY
Last Price : 1.37 | Upside/Downside : +2.03 (148.18%)

Posted by Sslee > 2 months ago | Report Abuse

Maybank analyst TP of RM 3.40 for AAX is now only worth RM 1.30? Very interest to hear what Maybank analyst will say.

Newco issuing new shares (at RM1.30 per share) worth RM3 billion in the NewCo to acquire AAAGL.

Posted by StartOfTheBull > 2 months ago | Report Abuse

It is seem like a mathematical calculation. Maybe Lee can tabulate it out in rows and columns form for easier reading and understanding.


Sslee

4,705 posts

Posted by Sslee > 4 hours ago | Report Abuse

Expected gain arising from the Proposed AAB Disposal
Based on the Company’s audited consolidated financial statements for the FYE 31
December 2022, the Proposed AAB Disposal is expected to result in a pro forma gain
on disposal of AAB upon completion of the Proposed AAB Disposal of approximately
RM6,071.45 million. The details of the pro forma gain arising from the Proposed AAB
Disposal is set out below:
RM’ million
AAB Disposal Consideration 3,800.00
Add: Net liabilities of AAB as at 31 December 2022 2,351.75
Less: Transaction costs for the Proposed AAB Disposal (4.30)
Less: Estimated capital gains tax (76.00)
Pro forma gain on disposal of AAB 6,071.45

The NewCo will then acquire Capital A's aviation business — AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) — for RM6.8 billion. It will be issuing new shares worth RM3 billion in the NewCo to acquire AAAGL, while it will acquire AAB for RM3.8 billion, to be satisfied by assuming RM3.8 billion of the RM3.83 billion worth of debt that Capital A owes AAB.

Newco issuing new shares worth RM3 billion in the NewCo to acquire AAAGL, and at the same time take over Net liabilities of AAAGL as at 31 December 2022 RM 1,801.00 million

Newco acquire AAB for RM3.8 billion, to be satisfied by assuming RM3.8 billion of the RM3.83 billion worth of debt and at the same time take over AAB Net liabilities of as at 31 December 2022 2,351.75 million.

Posted by The_JQuestion > 2 months ago | Report Abuse

i think lee first time see bollywood dance,, if price higher , eveeyrthing also can higher... adjust higher la aduh ,, now u trust TF so much 1.30 later can 1.65 also :)) just my two sens , what a brillaint idea , tony master move of ALL time , we are talking
IF tony is CEO of MAS , i dont think MAS need banrkupt , he is the master grandmaster super magician we have seen
KNOCKOUT deal i call this TING TING KO !

Posted by Sslee > 2 months ago | Report Abuse

I will be at the front row seat with popcorn and cola watching Stony' bollywood dance and magic show. Hope Stony don't tripped over and end up in Jail.

Posted by Sslee > 2 months ago | Report Abuse

No need for any more calculation.
From Stony this is what AAX/NewCo will get from capA deal

Newco issuing new shares worth RM3 billion in the NewCo to acquire AAAGL, and at the same time take over Net liabilities of AAAGL as at 31 December 2022 RM 1,801.00 million

Newco acquire AAB for RM3.8 billion, to be satisfied by assuming RM3.8 billion of the RM3.83 billion worth of debt and at the same time take over AAB Net liabilities of as at 31 December 2022 2,351.75 million.

And suiyee sucker AAX/Newco RM 1.00 billion PP.

So do you think a mere RM 1.00 billion new capital injection is enough for NewCo working capital and not default on billion of debts, lease payment, maintanance payment, trade and other payables?

Posted by Sslee > 2 months ago | Report Abuse

Merger of airlines alone enough to reverse all of Capital A's negative equity, says Fernandes

By Chester Tay & Adam Aziz | theedgemalaysia.com | 2024-04-26 14:39:42
KUALA LUMPUR (April 26): The corporate exercise to merge the AirAsia airline businesses under AirAsia X Bhd (AAX) is apparently sufficient to offset all of the RM8.7 billion negative equity in Capital A Bhd, according to chief executive officer Tan Sri Tony Fernandes.

Both Capital A and AAX on Thursday unveiled a slew of related party transactions that will eventually see the consolidation of all airline businesses being housed under AAX in a RM6.8 billion share and debt settlement deal.

Using balance sheet numbers as at Dec 31, 2022 (FY2022), Capital A told Bursa Malaysia that this deal alone would give rise to a minimum positive equity of RM492.8 million.

“[Using FY2023 numbers] will be even better,” said Fernandes in a briefing on Friday, “because as I said, we are profitable. In FY2023 and FY2024, [Capital A's equity position is] also much stronger,” he told the audience here.

Capital A’s negative equity position has been the main reason it is being listed as a Practice Note 17 (PN17) company, a category typically meant for financially distressed listed issuers.

The divestment of AirAsia Aviation Group Ltd (AAAGL) is expected to give rise to a pro forma gain of RM4.69 billion to Capital A, while the disposal of AirAsia Bhd (AAB) would result in a gain of RM6.07 billion.

Posted by joyvest > 2 months ago | Report Abuse

Massive increase in share capital as a result of the said reorganisation. It is going to be very difficult for the shares to spike given with such a massive capital base...

Posted by EngineeringProfit > 2 months ago | Report Abuse

Ini Kali lah!!

Posted by Sslee > 2 months ago | Report Abuse

Use of proceeds from the Proposed Private Placement
The gross proceeds of RM1,000.00 million to be raised from the Proposed Private
Placement are intended to be used in the following manner:-
Proposed use of proceeds

Indicative allocation
(RM’000)
 Funding for aircraft, engines and other aircraft parts as well as associated pre-delivery payments
450,000 to 550,000
 Pre-payment / Repayment of the AAB Group’s term loan facilities(1)
300,000
 General working capital(2) 104,500 to 204,500
Notes:-
(1) As at 31 December 2023, the total consolidated borrowings and lease liabilities of AAX, AAAGL and AAB are RM1,512.03 million, RM8,566.00 million and RM15,895.24 million respectively. The proposed pre-payment / repayment of the AAB Group’s term loan facilities amounting to RM300.00 million is expected to result in pre-tax annual interest savings of RM35.25 million based on the
interest rate of 11.75% of the term loan facilities. The pre-payment / repayment of the AAB Group’s term loan facilities is expected to be completed within 6 months from the completion of the Proposed Private Placement.

(2) A portion of the gross proceeds from the Proposed Private Placement is intended to be earmarked for general working capital of the New Aviation Group’s aviation businesses. This includes expenses for expansion of new routes, marketing, advertising and promotional activities as well as system enhancements.
Notwithstanding the above, the allocation as disclosed above is indicative and based on the management’s best estimate only

Posted by Sslee > 2 months ago | Report Abuse

How on earth will NewCo handle below borrowing and lease liabilities?

As at 31 December 2023, the total consolidated borrowings and lease liabilities of AAX, AAAGL and AAB are RM1,512.03 million, RM8,566.00 million and RM15,895.24 million respectively

Posted by Sslee > 2 months ago | Report Abuse

Basis and justification for the issue price of the Placement Shares
The Placement Shares will be issued based on a discount of not more than 15% to the 5-day VWAP of the AAX Shares / NewCo Shares up to and including the last trading day prior to the price-fixing date of the Placement Shares, to be determined by the NewCo Board after taking into consideration the prevailing market conditions.
As the Proposed Private Placement may be implemented in 1 or multiple tranches, there could potentially be several price-fixing dates and issue prices.

For illustrative purposes, the issue price of the Placement Shares is assumed to be
RM1.11, which represents a discount of approximately 14.62% to the 5-day VWAP of
the AAX Shares up to and including the LPD of RM1.30 (Source: Bloomberg).

Posted by Sslee > 2 months ago | Report Abuse

The sucker PP investors will get a discount of not more than 15% the 5-day VWAP of the AAX Shares / NewCo Shares up to and including the last trading day prior to the price-fixing date of the placement share.

Will the big shark placed a regulated short selling and earned the aprox 15% profit on the PP? Meanwhile suyiee sucker billis buying AAX/NewCo shares from open market.

Posted by Sslee > 2 months ago | Report Abuse

Placement arrangement
The Placement Shares are intended to be placed to independent third party investor(s) to be identified later. Such investor(s) shall be party(ies) which qualify under Schedule 6 or Schedule 7 of the Capital Markets and Services Act, 2007. The Placement Shares are not intended to be placed to the following persons:-

(i) a director, major shareholder or chief executive of the listed issuer or a holding company of the listed issuer (“Interested Person”);
(ii) a person connected with an Interested Person; or
(iii) nominee corporations, unless the names of the ultimate beneficiaries are disclosed.

The Proposed Private Placement may be implemented in 1 or multiple tranches (as the investors may be identified and procured over a period of time rather than simultaneously) within a period of 6 months from the date of approval by Bursa Securities for the listing and quotation of the Placement Shares on the Main Market of Bursa Securities or any extended period as may be approved by Bursa Securities, subject to the prevailing market conditions

Posted by Sslee > 2 months ago | Report Abuse

The Proposed AAAGL Acquisition entails the acquisition of the entire equity interest (including any forms of capital contribution and any unissued capital) in AAAGL (“AAAGL Equity Interest”) by the NewCo from Capital A for a purchase consideration of RM3,000.00 million to be satisfied entirely via the allotment and issuance of 2,307,692,307 new NewCo Shares at an issue price of RM1.30 in accordance with the terms of the AAAGL SSPA.

The actual number of Placement Shares to be issued will depend on the issue price of the Placement Shares to be determined later. For illustrative purposes, if the issue price of the Placement Shares is assumed to be RM1.11, which represents a discount of approximately 14.62% to the 5-day VWAP of the AAX Shares up to and including the LPD of RM1.30 (Source: Bloomberg), the Proposed Private Placement will entail the issuance of 900,900,900 Placement Shares.

The Proposed Private Placement is intended to be implemented after the Warrants Entitlement Date and closer to the implementation of the Proposed Acquisitions. Nonetheless, the Proposed Private Placement may still be implemented in the event that the Proposed Issuance of Free Warrants is not approved and hence, not implemented.

Is Bursa SC waive the limit of PP of not more than 10% NOSH?

Posted by Sslee > 2 months ago | Report Abuse

One of the AAAGL and AAB Conditions Precedent:
The Purchaser raising RM1,000,000,000 within the financial year ending 31 December 2024, pursuant to the placement letter(s) or commitment letter(s) or agreement(s) (as the case may be) executed by the Purchaser and the identified investors in relation to the Proposed Private Placement.