On March 7, Bursa Malaysia Securities Bhd approved the company’s regularisation plan, paving the crucial step towards its exit from PN17 status.
Capital A’s CEO, Tony Fernandes, said the company will call for an extraordinary general meeting for shareholders and redeemable convertible unsecured Islamic debt securities holders, likely next month.
“We will issue the circular to the shareholders of the plan that we put to Bursa for approval. Then, we will call an EGM for shareholders to approve the plan, which I hope will take place in mid-April.
“Once that is approved by the shareholders, we will go to the High Court to approve our capital reduction plan,” he said at a press conference on the Capital A – Next Chapter event today.
The High Court’s approval for the capital reduction plan is required as legal confirmation for the company’s next restructuring step.
The court’s approval will also confirm Capital A’s capital reduction exercise, which is key to its plan to distribute AirAsia Aviation Group Ltd’s shares to its shareholders.
Moving forward, Fernandes said Capital A will focus on its non-aviation businesses while retaining an 18% stake in aviation.
He said once Capital A exits its PN17 status, it will unlock new growth opportunities and provide the company with greater access to capital markets.
This milestone will set the stage for potential individual listings of its six key portfolio companies – Asia Digital Engineering, Teleport, AirAsia MOVE, Santan, BigPay, and Abc International – as part of its long-term strategy to enhance shareholder value and drive sustainable expansion.
On another note, Fernandes said a private placement to raise RM1 billion in the group was considered to have been completed.
“We have a RM1 billion placement, where there have been various stories, but I can confirm that it is done,” he said, declining to elaborate on whether Saudi Arabia’s Public Investment Fund (PIF) is a subscriber to the private placement.
According to news reports, PIF plans to invest about US$100 million in the group, making it the largest contributor to the airline group’s fundraising, which targets around RM1 billion.