Unless otherwise defined, the abbreviations and definitions used in the announcements by the Company dated 29 December 2020 and 5 January 2021 shall apply herein.

Following the announcements made on 29 December 2020 and 5 January 2021 on the disposal of 32.67% equity shares in AAI with AAAGL receiving USD37,660,000 in gross proceeds, the Company wishes to announce the signing of the share purchase agreement to sell the remaining 16.33% equity shares held in AAI by AAAGL to Air India Limited, an affiliate of Tata Sons Private Limited, India. All customary consents and regulatory approvals have been secured. AAAGL is expected to receive INR 1,556,487,800 (Equivalent to USD 18.83 million or MYR89.25 million) in gross proceeds. There will be no gain or loss on the disposal as Capital A has marked the remaining 16.33% in AAI to its fair value.

During the course of the operations of the joint venture, AAI had received certain notices from the Tax authorities in India. The Company and its affiliates will continue to cooperate with AAI in contesting these notices.

The Disposal will not have any effect on Capital A share capital and substantial shareholders’ shareholding, and is not expected to have any material effect on the earnings per share, net assets per share as well as the gearing in the Company for the financial year ending 31 December 2022.

The cash balance of AAAGL will increase by the same amount after this disposal exercise.

Post the closing of this transaction, AAAGL will not hold any equity interest in AAI and the Brand License and Technical Services Agreement between AirAsia Berhad and AAI will be terminated after 12 months from the date of termination of the shareholders agreement between the parties or at an earlier date as may be intimated by AAI.

This announcement is dated 2 November 2022.

Note: The approximate Ringgit Malaysia (“RM”) amounts set-out in this Announcement are based on the US Dollar and Indian Rupee to RM exchange rates provided by Bank Negara Malaysia on 2 November 2022.