– Capital A, formerly known as AirAsia Group, plans to raise over a billion dollars in debt and equity to exit from their distressed status and list businesses through a blank-cheque company.
– They aim to secure more than a billion dollars in new equity and debt, including a $400 million loan, and have also signed separate fundraising deals for Teleport, Move, and Asia Digital Engineering.
So Capital A, the company formerly known as AirAsia Group and currently operating under the moniker of a letter from the alphabet, is planning to pull a rabbit out of the hat by raising over a billion dollars in debt and equity. Now, I don’t know about you, but any plan that begins with the phrase “raise over a billion dollars in debt” sounds more like a magic trick than a business strategy. But hey, who am I to judge? I’m just a business reporter with a sense of humor as dry as my Aunt Martha’s Thanksgiving turkey.
The man behind this master plan is none other than Tony Fernandes, their CEO who seems to have a penchant for financial Houdini acts. According to the grapevine, he’s looking to list some of his businesses through a blank-cheque company in the Big Apple. Sounds like a good idea, right? Except when you consider that Capital A is classified as a distressed company by the Malaysian stock exchange, which is like wearing a scarlet letter in the world of finance.
But folks, don’t lose hope yet! Capital A has a trick up its sleeve. It’s planning to exit from this dreaded PN17 status, possibly with a cloud of smoke and a dramatic flourish of a cape. They’ve even found a sidekick for their escapade – Aetherium Acquisition, a SPAC that’s been trading on NASDAQ. The plan is to list several businesses through Aetherium next year, including a new venture that’s about as ambitious as trying to sell ice to Eskimos – extending the AirAsia brand to companies hoping to start airline franchises in developing countries.
Now you might be thinking, “But what about the money, you ask?” Well, Capital A is hoping to secure more than a billion dollars in new equity and debt over the next few months. They’re even planning a $400 million loan in the form of a revenue bond to be paid out of airline ticket sales. You’ve got to admire their optimism – or audacity, depending on how you look at it.
As for the cherry on top, the group has also inked $175 million in separate fundraising deals for Teleport, Move and Asia Digital Engineering. The new entity will be optimistically renamed “Capital A International”, and will contain a new AirAsia franchise business, a consulting arm, and aircraft leasing business.
So there you have it, folks. If you ever thought running a successful business was about having foolproof plans and predictable outcomes, Capital A is here to show you that you can still make waves by doing the financial equivalent of a high-wire act with no safety net. Only time will tell if they land on their feet or end up as a cautionary tale in the annals of corporate finance.