Capital A Berhad, the Malaysian unit operating AirAsia Philippines, announced that it had finalized a merger deal with US special purpose acquisition company (SPAC) Aetherium Acquisition Corp., marking the entry of Capital A International (CAPI) in the US public markets. 

In a statement to the press on March 1, AirAsia Philippines said CAPI, which is the owner and licensor of the AirAsia brand, will merge with Aetherium and become a publicly traded entity under a business combination agreement. 

The Boards of CAPI and Aetherium approved the proposed transaction, which includes a pro forma enterprise value for CAPI at around $1.15 billion.

However, the transaction is still subject to the approval of Aetherium stockholders and other closing conditions, it added. 

Greenberg Traurig, LLP and Foong & Partners are the US and Malaysian legal counsels for CAPI respectively. Rimon P.C. is the US legal counsel to Aetherium. 

Capital A Chief Executive Officer (CEO) Tony Fernandes said that AirAsia has managed to build a travel brand value of over $1 billion since its inception, and amassed a global consumer base that positions the brand to expand internationally through CAPI. 

“This listing grants us access to the world's most extensive and liquid capital markets, enhancing the company's international credibility and presence while creating value for our shareholders,” he said. 

AirAsia is the first ASEAN-based brand in the travel sector to adopt the SPAC merger strategy and expand their operations through licensing, noted Fernandes. 

“Additionally, our growth strategy involves acquiring and developing more brands from this dynamic region. We are optimistic about the potential for our brand business to expand well beyond our origins, particularly in markets where intellectual property and brand value are highly esteemed by consumers and investors,” he remarked. 

Aetherium Chairman and CEO Jonathan Chan remarked that, through their partnership, CAPI will be able to extend AirAsia and its other brands to the large market opportunities offered in the US. 

“This collaboration presents a distinctive opportunity for U.S. capital market investors to participate in the rapid expansion of Asean economies through a company that embodies the region's diverse culture, energy, and emerging opportunities,” said Chan. 

Aside from AirAsia, CAPI holds the intellectual property rights for 14 other brands and more than 224 trademarks across 23 countries. 

AirAsia has a current fleet of 242 aircraft, flying to 278 routes in 131 destinations. It has operating hubs in the Southeast Asian region namely in Malaysia, Thailand, Indonesia, and the Philippines, with a hub in Cambodia underway.