Capital A International, a global brand management platform, specializes in the expansion, management and licensing of the AirAsia brand
Leveraging its successful track record, Capital A International will champion and expand to the global markets renowned brands from Southeast Asia (“Asean”)
Offers global investors a gateway to participate in the growth of the massive 680-million-strong Asean population, leveraging the region’s most dynamic and recognizable brands
Proposed transaction represents an enterprise value on a pro-forma basis of US$1.15 billion
Capital A Berhad (“Capital A”) (Kuala Lumpur Stock Exchange: 5099.KL) has announced the finalization of a business combination agreement with Aetherium Acquisition Corp (Nasdaq: GMFI), a Special Purpose Acquisition Company (“SPAC”), to list Capital A International (“CAPI”) in the U.S. public markets. CAPI utilizes the expansion, management, and licensing of the AirAsia brand, serving as a dynamic global marketing catalyst for ASEAN brands. This transaction also provides investors with a gateway to participate in a fast-growing economic hub, poised to become the world’s fourth-largest economy by 2030.
Leading CAPI will be Tony Fernandes, one of Asia’s most recognizable entrepreneurs, renowned for acquiring AirAsia in 2001 and transforming it into a global airline, democratizing air travel in the region. He has overseen the airline’s impressive growth from two planes to its current fleet of 242 aircraft, making it Asia’s largest low-cost carrier and one of the top three strongest airline brands worldwide. Operating across ASEAN with hubs in Malaysia, Thailand, Indonesia, the Philippines, and soon Cambodia, AirAsia flies 278 routes to 131 global destinations, having served over 776 million passengers since its inception.
Tony Fernandes, CEO of Capital A, stated, “Over more than two decades, AirAsia has become a prestigious brand synonymous with value, innovation, and inclusivity. AirAsia’s transformation from a small Malaysian airline into a leading global aviation and travel brand valued at over $1 billion has enabled Capital A to build a diversified portfolio spanning aviation, aviation services, logistics, and digital companies in fintech, travel, and hospitality. The evolution of the AirAsia brand has cultivated a loyal global consumer base, positioning us favorably to expand our brand internationally through CAPI. This listing provides 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.”
In addition to the AirAsia brand, CAPI owns the intellectual property rights for 14 other renowned brands and over 224 trademarks spanning 23 countries. CAPI’s platform integrates brand strategy, creative marketing, and intellectual property development to strategically position its brands and foster cultural significance among consumers. The company intends to leverage the brand value of AirAsia through further licensing while implementing its successful strategy to drive and accelerate the growth of its intellectual property portfolio.
Mr. Fernandes added, “We are the first ASEAN-based brand in the travel sector to adopt this strategy and expand through licensing, leveraging our strong ties to the ASEAN region. 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.
“The ASEAN region offers a thriving economic landscape with a population of 680 million, surpassing the U.S. and closely trailing the European Union. Fueled by a growing middle-income population that is creating new consumer markets and economic opportunities, the region is poised for sustained growth. Moreover, the recent surge in popularity of Asia-based media, entertainment, and lifestyle brands underscores the escalating global demand for brands originating in Asia.”
Jonathan Chan, Chairman, and CEO of Aetherium, commented, “We’re excited to partner with Tony and the CAPI team to capitalize on their proven track record and extend the brand beyond the world’s fastest-growing consumer-driven market, boasting a population twice the size of the United States. Under Tony’s exceptional leadership, AirAsia has evolved into an immensely successful and widely recognized brand in the region. With over 22 years of innovation in air travel and digital services, the company is strategically positioned to strengthen its leadership in ASEAN and pursue growth in international markets. 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.”
Investment Highlights
- Owner and licensor of the renowned AirAsia brand, with an iconic presence in airline, travel, and lifestyle, CAPI taps into the growth resurgence of Asia’s largest low-cost carrier and supported by a robust order book.
- Operating an asset-light business model, the business generates strong operating margins with minimal inventory and working capital requirements, fortified by stable and recurring revenue stream from royalty fees, driving free cash flow.
- The company benefits from access to Capital A’s ecosystem, boasting over 50 million users, 22 million loyalty members, and over 56 million social media followers, expanding brand reach and enhancing CAPI’s brand-building capabilities.
- Based in Asean, one of the world’s fastest-growing economies poised to become the fourth-largest by 2030, the company has a substantial addressable licensing global market of $341 billion, with the Asean market accounting for $5 billion, growing at an impressive 13% annually, outpacing the global average.
- Abundant opportunities exist to develop the brand platform:
- Extend the AirAsia brand beyond the travel sector by expanding into new industries, categories and geographies through in-house ventures or joint ventures;
- Develop new brands that capitalize on the strength of the Asean markets;
- Creating character intellectual property and enhance value through partnerships and merchandising; and
- Acquire and grow other Asean-based brands
- The company is guided by an experienced management team with a successful track record in brand management.
Editor’s Note: Asean (Association of Southeast Asian Nations) is a political and economic union comprised of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
Key Transaction Terms
Under the terms of the proposed transaction, CAPI will combine with Aetherium and become a publicly traded entity. The transaction reflects an estimated pro forma enterprise value for CAPI of $1.15 billion. Although the Boards of both CAPI and Aetherium have unanimously approved the transaction, the transaction remains subject to the approval of Aetherium stockholders and other customary closing conditions. Additional information about the transaction, including a copy of the Business Combination Agreement will be available in a current report filed by Aetherium on Form 8-K with the U.S. Securities and Exchange Commission (“SEC”), which may be found at www.sec.gov.
Advisors
Greenberg Traurig, LLP serves as U.S. legal counsel and Foong & Partners serves as Malaysian legal counsel to CAPI. Rimon P.C. is servicing as United States legal counsel to Aetherium.
