Capital A clarifies Bursa Malaysia decision

KUALA LUMPUR, 8 January 2026 – Capital A Berhad (“Capital A” or “the Group”) wishes to clarify that Bursa Securities’ decision not to approve Capital A’s application for an extension of time to complete the implementation of the Distribution has no material impact on the Group’s ongoing corporate exercises. There is no change to the Group’s strategy. The only effect is a slight revision to the completion timeline.

The Distribution remains subject to the completion of the Private Placement by AirAsia X Berhad (“AAX”), as the new AAX shares must be issued before they can be distributed to entitled Capital A shareholders. Following the approval granted by Bursa Securities to AAX for an extension to complete its Private Placement by 19 January 2026, Capital A’s timeline will align accordingly. Upon issuance, the new AAX shares will be allotted to Capital A shareholders as planned.

For the avoidance of doubt, Capital A had proceeded to announce the Entitlement Date on the premise that there was sufficient time for the identified investors to provide the necessary documentation. At the time of the announcement of the Entitlement Date, there was no indication suggesting that the identified investors would be unable to meet the deadlines set by AAX and it was reasonable to expect that the AAX Private Placement would be completed within the approved timeframe, i.e. by 31 December 2025, in line with AAX’s target completion date.

In addition, the announcement of the Entitlement Date was a necessary step to allow Capital A to submit a supplemental application to the High Court for an ancillary order pursuant to Section 116 of the Companies Act 2016. This application relates to the reduction of the Company’s issued share capital pursuant to the Distribution, amounting to approximately RM2.7 billion, based on the closing market price of AAX Shares of RM1.62 on the Entitlement Date (“Supplemental Court Order”). 

By way of background, the quantum of the capital reduction can only be determined by reference to the closing market price of AAX Shares on the Entitlement Date. As such, the application for the Supplemental Court Order could not be made until the Entitlement Date has been announced. In this regard, the Entitlement Date on 3 December 2025 was carefully planned to provide sufficient buffer for Capital A to obtain the Supplemental Court Order.