Asia Aviation PCL. (SET: AAV) has officially rebuffed the rumor of a merger with Thai AirAsia X Ltd. (“Thai AirAsia X”) through an announcement via the Stock Exchange of Thailand.
Mr. Tassapon Bijleveld, CEO of Thai AirAsia X and Executive Chairman of Asia Aviation PCL., the latter being a major shareholder in Thai AirAsia, disclosed that the rumored merger between both entities was entirely false, considering the natures of both businesses who hold different air operator’s certificates (AOC) as well as flight slots. Hence, impossibility to merge due to conflicting services provided.
Previously, it was reported that AAV and AirAsiaX would undergo merger through ‘Share Swap’ by the issuance of additional AAV right offerings to be traded for Thai AirAsia X’s shares, with no specific amount or valuation, though many estimated the value to be similar to the board to mitigate dilution effect. Subsequently, Thai AirAsia X would be operating under AAV management.
Source has claimed that following the merger, AAV would realize profits from both AAV and Thai AirAsia X, whereby LSEG CONSENSUS data showed an estimate of AAV’s revenue in 2024 at THB 50,965 million, being a net profit of THB 2,238 million – 6 brokers set the target price at THB 2.91
Thai AirAsiaX, however, is currently rehabilitating without any clear information. Nonetheless, the source has estimated a net profit for Thai AirAsiaX at THB 800-1,000 million.
Provided the foregoing number, AAV would have its profit skyrocketed to THB 3,000 million, equivalent to a 50% increase, compensating the dilution effect brought by the merger deals. In consequence, AAV may also consider an extraordinary dividend payment as another reparation.
