Capital A Shareholders Approve Capital Reduction For PN17 Exit Plan

Capital A Decrease OK'd for PN17 Exit Plan

Capital A Berhad announced that its shareholders and RCUIDS holders have unanimously approved an important resolution at the Company’s Extraordinary General Meeting (EGM). This resolution pertains to the Proposed Regularisation Plan, which includes a capital reduction of up to RM6 billion.

This marks the accomplishment of key milestones in Capital A’s Proposed Regularisation Plan, aimed at helping the Company transition from its Practice Note 17 (PN17) status and strengthening its long-term financial stability. The capital reduction will enable the Company to streamline its balance sheet by offsetting its accumulated losses, resulting in a more transparent and robust financial standing. 

Tony Fernandes, CEO of Capital A Berhad, said: “This is a pivotal day for Capital A. With shareholder and RCUIDS holders support for capital reduction, we are taking bold steps to complete our turnaround and move beyond PN17. We’ve been through tough times, but we’ve built powerful businesses that are now positioned for growth, and these exercises are critical to unlocking that next chapter.”

These initiatives are part of a broader transformation strategy, which includes the disposal of Capital A’s aviation business to AirAsia X Berhad (AAX) and a strategic focus on six high-growth, non-aviation businesses:

• Asia Digital Engineering (ADE) – aircraft maintenance and engineering

• Teleport – logistics and cross-border delivery

• AirAsia MOVE – digital travel and booking platform

• BigPay – digital finance and fintech

• Santan – inflight catering and F&B brand

• Abc. International – brand management and licensing

Now that the EGM approvals have been obtained, Capital A will move forward to obtain High Court confirmation for the capital reduction once the entitlement date of the Proposed Disposal is announced. These steps facilitate Capital A's completion of its Regularisation Plan and are anticipated to considerably bolster the Group’s capital base, increase investor confidence, and promote long-term growth—aiming to enable the Company to exit PN17 status by mid-2025.