A major step forward in Capital A’s PN17 exit plan: Shareholder circular issued and EGM date set
KUALA LUMPUR, 16 April 2025 – Capital A Berhad (“Capital A” or “the Group”) has issued its Circular to Shareholders on the Proposed Regularisation Plan, marking a major step forward in its plan to exit Practice Note 17 (PN17) status. This follows the earlier approval by Bursa Malaysia, clearing the way for the Company to proceed with the next phase of its corporate transformation.
Under the plan, Capital A will undertake a capital reduction of up to RM6 billion under Section 116 of the Companies Act 2016, which will allow the Company to offset its accumulated losses and rationalise the balance sheet of the Group to reflect more accurately the value of its underlying assets and thus the financial position of the Group. Based on the pro forma consolidated Net Assets of Capital A as at 31 December 2023 , upon completion of the Proposed Regularisation Plan, Capital A’s shareholders’ equity on a consolidated basis shall be approximately RM742.1 million. As part of the broader regularisation exercise, shareholders have already approved the disposal of Capital A’s aviation business to AirAsia X Berhad (AAX), a move that enables the Group to focus entirely on its non-aviation portfolio of high-growth businesses that reflect the Group’s future direction.
The upcoming Extraordinary General Meeting (EGM) will be held on 7 May 2025 to seek shareholder approval for the capital reduction.
The completion of this exercise targeted in June 2025 will position Capital A for sustainable growth and renewed investor confidence. Following the aviation divestment, Capital A’s business portfolio will center on six dynamic entities, each contributing to the Group’s long-term value creation:
Asia Digital Engineering (ADE):
Leading aircraft maintenance, repair and overhaul (MRO) service provider operating brand new 14-line state-of-the-art hangar. ADE optimises fleet performance for AirAsia and third-party businesses across the region with a comprehensive range of tailored aircraft services.
Teleport:
Largest air logistics network operator in Southeast Asia providing integrated logistics solutions cheaper, faster and better than anyone else in Asean.
AirAsia MOVE:
AI-powered online travel agent (OTA) platform with 700+ airlines and over a million hotels - transforming budget travel across Asean and beyond.
BigPay:
Asean fintech company democratising financial literacy, accessibility and wellbeing across the region.
Santan:
As an F&B business redefining culinary experiences both in flight and on the ground, Santan aims to grow from inflight caterer to B2B food distributor to retail chains and hypermarkets.
Abc. International (formerly known as Brand AA Sdn Bhd):
Asean’s hottest brand management company leveraging Capital A’s assets and experience to forge a diverse global portfolio of IPs.
Tony Fernandes, CEO of Capital A, commented: “This is a significant turning point for Capital A. Exiting PN17 isn’t just about restoring our financial health—it’s about unlocking the full potential of the incredible six businesses we’ve built over the past few years. These companies are not only growing, but they also reflect the core of who we are: disruptive, digital-first and deeply connected to Asean. I’m confident this regularisation plan puts us on a stronger path to long-term value creation. We look forward to securing shareholder support on 7 May.
”The combined income statements for the Remaining Businesses of Capital A Group (excluding the Aviation Segment) recorded an unaudited Profit After Taxation of RM 162.1 million for the Financial Year Ended 31 December 2024.”
Upon securing shareholder approval at the EGM, the proposed capital reduction will be submitted to the High Court for confirmation. With the completion of the Proposed Regularisation Plan, Capital A will be well-positioned to pursue future opportunities including strategic partnerships, capital market exercises, and regional expansion.
This milestone marks a major step in a transformation journey that began at the height of the Covid-19 pandemic and affirms the Company’s renewed strength, focus, and direction.