Malaysia’s Capital A Bhd, which operates budget carrier AirAsia, will hive off its aviation business to its long-haul affiliate as the group seeks to streamline its operations and gain better access to financing.
The company entered into a non-binding offer to sell its Malaysian airline unit and AirAsia Aviation Group Ltd — which consists of its subsidiaries in Thailand, Indonesia, Philippines and Cambodia — to AirAsia X Bhd.
Shares of AirAsia X climbed as much as 7.3 per cent after the announcement, while Capital A rose more than 4 per cent before paring gains.
