Capital A has announced that it had entered into a letter of intent with GMFI, a special purpose acquisition corporation listed on the Nasdaq for the proposed business combination between GMFI and Capital A International, a special purpose corporation to be formed for this purpose.
The proposed business combination entails the acquisition of all the issued and outstanding share capital of CAPI by GMFI, which will result in CAPI becoming a new publicly listed company on NASDAQ. Capital A said it had triggered the prescribed criteria under Practice Note 17 and is obligated to regularise its financial condition, it said the proposed business combination will form part of the proposed regularisation plan to be undertaken by the company to regularise its financial position.
Capital A then intends to form CAPI under the laws of Cayman Islands with the principal business to be an ASEAN-based investment and strategic development firm that leverages the AirAsia trade name and brand image. It is also intended that CAPI will also be involved in tactical acquisition, incubation, and partnerships to provide platforms for growing entrepreneurs
to leverage on. CAPI intends to generate revenue from brand royalty and leasing of aircraft.
After the incorporation, CAPI will acquire 100% equity interest in Brand AA Sdn Bhd the registered proprietor for all the rights in AirAsia Brand, which is principally involved in the brand management of the AirAsia Brand.
GMFI will ascribe to CAPI for purposes of the Proposed Business Combination an indicative equity value of US$ 1 billion. Capital A said the proposed business combination will provide the company an opportunity to unlock the value of the AirAsia Brand.
