KUALA LUMPUR: Capital A Bhd
’s wholly owned subsidiary, Asia Digital Engineering Sdn Bhd (ADE) has entered into a shareholders agreement (SHA) with Sivilai Asia Co Ltd to establish a maintenance repair and overhaul (MRO) business in Cambodia.
In a filing with Bursa Malaysia, Capital A said under the SHA, ADE will subscribe to 60% of the issued and paid-up capital of a Cambodian joint venture company incorporated under the name ADE (Cambodia) Co Ltd (ADE Cambodia). Sivilai Asia will invest the remaining 40%.
The SHA also records the rights and obligations of each party relating to the operation and management as well as their shareholding in ADE Cambodia.
“ADE will inject up to the amount of US$1.2mil with two tranches (first tranche during pre-incorporation and the balance would be post-incorporation), and ADE will use internal funds for its share of the equity investment,” it said.
“Capital A has incorporated a joint venture company, AirAsia (Cambodia) Co Ltd, to start AirAsia branded airlines in Cambodia and will commence operation in November 2023.
“This will create an opportunity for ADE to establish its operation in Cambodia by providing service to AirAsia Cambodia and other third-party airlines operating in Cambodia's major airports,” it said.
Capital A said the objective is to optimise utilisation of ADE’s assets at maximum capacity to reach utmost productivity.
“The proposal will facilitate and expedite consolidation of all of ADE’s resources and assets in order to optimise more productive, sustainable levels of operation and service for the AOCs, which in turn enable Capital A to capitalise on cost-saving opportunities and potentially capture surpluses from new revenue streams generated,” it said.
The subscription exercise is expected to be completed in the fourth quarter of 2023.
