Capital A Berhad (“Capital A”) (KLSE: 5099.KL) has confirmed the finalization of a business combination agreement with Aetherium Acquisition Corp (Nasdaq: GMFI), a Special Purpose Acquisition Company (SPAC). This strategic move aims to list Capital A International (“CAPI”) in the U.S. public markets. As the driving force behind the iconic AirAsia brand, CAPI serves as a global marketing catalyst for Asean brands, offering investors an opportunity to engage with a rapidly growing economic hub.
Led by renowned entrepreneur Tony Fernandes, CAPI capitalizes on the success of AirAsia, a brand he transformed into a global aviation giant since acquiring it in 2001. AirAsia, Asia’s largest low-cost carrier, among the top three strongest airline brands in the world, operates across Asean with hubs in multiple countries, flying 278 routes to 131 destinations and boasting a remarkable track record of over 776 million passengers flown.
Tony Fernandes, CEO of Capital A, highlighted the evolution of AirAsia into a valued global brand, emphasizing the company’s diversified portfolio in aviation, logistics, and digital ventures. The listing of CAPI in the U.S. is expected to enhance international credibility and shareholder value.
CAPI’s unique platform integrates brand strategy, marketing, and intellectual property development to position its brands strategically and cultivate cultural significance. With intellectual property rights spanning 23 countries, CAPI plans to leverage the brand value of AirAsia through licensing and expanding its intellectual property portfolio.
Fernandes emphasized CAPI’s innovative strategy as the first Asean-based brand in the travel sector to expand through licensing. The company aims to acquire and develop more brands from the dynamic Asean region, tapping into the region’s thriving economic landscape and growing middle-income population.
Jonathan Chan, Chairman and CEO of Aetherium, expressed excitement about the collaboration, presenting a distinctive opportunity for U.S. capital market investors to participate in the rapid expansion of Asean economies through a company embodying the region’s diverse culture and emerging opportunities.
Investment Highlights:
- CAPI holds the ownership and licensing rights for the renowned AirAsia brand, an influential presence in airline, travel, and lifestyle sectors, tapping into the resurgence of Asia’s largest low-cost carrier with robust order book support.
- Operating on an asset-light business model, CAPI generates robust operating margins while maintaining minimal inventory and working capital requirements. The company’s financial strength is fortified by a stable and recurring revenue stream derived from royalty fees, contributing to a healthy free cash flow.
- Leveraging access to Capital A’s extensive ecosystem, CAPI benefits from a vast user base of over 50 million, including 22 million loyal members and a remarkable social media following of over 56 million. This broad reach enhances brand visibility and strengthens CAPI’s brand-building capabilities.
- Positioned in the heart of Asean, one of the world’s fastest-growing economies anticipated to rank fourth-largest by 2030, CAPI has access to a substantial addressable licensing global market valued at $341 billion. The Asean market alone accounts for $5 billion, experiencing an impressive annual growth rate of 13%, surpassing the global average.
- Abundant opportunities lie ahead for developing the brand platform, including:
- Expanding the AirAsia brand into new industries, categories, and geographies through in-house ventures or joint ventures.
- Creating new brands that capitalize on the strengths of the Asean markets.
- Developing character intellectual property to enhance value through strategic partnerships and merchandising.
- Acquiring and cultivating other Asean-based brands.
- Guided by an experienced management team with a successful track record in brand management, CAPI is well-positioned to navigate the dynamic market landscape and capitalize on emerging opportunities within the Asean region.
Editor’s Note: Asean (Association of Southeast Asian Nations) is a political and economic union comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
Key Transaction Terms:
- The proposed transaction reflects an estimated value for CAPI of $1.15 billion.
- Boards of both CAPI and Aetherium have unanimously approved the transaction, pending approval from Aetherium stockholders and other customary closing conditions.
- More information will be available in a current report filed by Aetherium on Form 8-K with the U.S. Securities and Exchange Commission (“SEC”) at www.sec.gov.
About Capital A International
Capital A International (CAPI) is a global brand management platform, specializing in the expansion, management, and licensing of the AirAsia brand. Led by Tony Fernandes, one of Asia’s most recognizable entrepreneurs, CAPI aims to capitalize on AirAsia’s brand value through additional licensing and to deploy its proven strategy to promote and accelerate the expansion of its intellectual property portfolio. CAPI’s platform combines brand strategy, creative marketing, and intellectual property development to effectively position its brands and establish cultural relevance among consumers. For more information, visit [https://www.capitalainternational.com].
About Capital A Berhad
Capital A (formerly known as AirAsia Group Berhad) is an investment holding company with a portfolio of synergistic travel and lifestyle businesses that leverage data and technology, including the world’s leading low-cost carrier AirAsia, an aviation services group, AirAsia MOVE Superapp, and fintech BigPay as well as logistics venture Teleport. Capital A’s vision is to create and deliver products and services that focus on offering the best value at the lowest cost, underpinned by robust data accumulated over 22 years in operation and one of Asia’s leading brands that remains committed to serving the underserved in Asean and beyond.
About Aetherium Acquisition Corp.
Aetherium Acquisition Corp. operates as a special purpose acquisition company (SPAC) created to facilitate a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. We actively seek out technologically advanced enterprises that push the boundaries of innovation. Our role involves not only identifying these cutting-edge businesses but also developing and enhancing their potential by leveraging their value and introducing them to the U.S. capital markets. Under the leadership of Jonathan Chan, who serves as Chairman of the Board and Chief Executive Officer, and Alex Lee, the Company’s Chief Financial Officer, the Company is committed to navigating the intersection of technology and business to drive growth and success. For more information on Aetherium, visit https://www.aetheriumcorp.com/.