Capital A announces EGM timeframe, marking key progress in aviation business disposal to AirAsia X
KUALA LUMPUR, 18 September 2024 – Capital A has announced that the Extraordinary General Meeting (EGM) circular detailing the proposed disposal of its aviation business to AirAsia X (AAX) has been cleared by Bursa Malaysia. This key procedural step paves the way for an EGM to be convened in the next three weeks, when shareholders will have the opportunity to approve the proposal.
With the clearance from Bursa Malaysia for the issuance of the circular, Capital A moves forward with its strategic plan to restructure and facilitate a business-centric valuation of its aviation and non-aviation entities. Following shareholders' approval at the upcoming EGM, the aviation disposal proposal will proceed to court for approval of the proposed distribution to shareholders via capital reduction.
The successful completion of this transaction will lead to the formation of the new AirAsia Group, which combines both short-haul and long-haul operations under one umbrella. With focused management and a well-defined strategic direction, the aviation group will ensure operational efficiency, robust connectivity, expanded market share, and ultimately enhanced profitability.
Tony Fernandes, CEO of Capital A said, “We are beyond excited about the next step of the aviation transformation. We are set to redefine the aviation future with the birth of the new AirAsia Group, where AirAsia and AAX operations unite to deliver increased profitability and returns for the shareholders.
He continued, “This transaction is a key part of our long-term strategy to unlock unparalleled value for our shareholders and position Capital A for sustainable growth across all its business verticals. By separating our aviation and non-aviation businesses, we can better focus on building synergies within each entity, driving growth, and maximising shareholder returns. Importantly, this will also allow Capital A to have a clean balance sheet and focus on finalising its regularisation plan to exit Practice Note 17 (PN17) status. We look forward to receiving the support of our shareholders at the upcoming EGM as we embark on this transformative journey.”
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