High Court Of Malaya Confirms Capital A’s Share Capital Reduction For Proposed Distribution

Capital A Cleared for Share Capital Cut

Capital A Berhad, also known as “Capital A” or “the Company,” has reached a crucial milestone as the High Court of Malaya has sanctioned its plan for share capital reduction and repayment, as detailed in Section 116 of the Companies Act 2016. This plan is part of the Proposed Distribution. The amount necessary for the share capital reduction, facilitating the Proposed Distribution, will depend on the market price of AAX shares when Capital A submits its application to the High Court after the Entitlement Date.

CEO of Capital A Tony Fernandes said, “This is another significant step forward in our transformation journey. The confirmation from the High Court provides us with the clarity we need to move ahead with the Proposed Distribution and other key initiatives. We are fully committed to ensuring a seamless transition for all stakeholders as we continue to reshape Capital A into a leaner, more focused travel and digital business. We appreciate the patience and support from our shareholders, partners and regulators as we work through this process.”

While this confirmation signifies significant progress, the Proposals—which include the Proposed AAAGL Disposal, Proposed AAB Disposal, and Proposed Distribution—remain dependent on the satisfaction or waiver of certain conditions outlined in the Share Sale and Purchase Agreements (“SSPAs”). The Company will announce the Entitlement Date for the Proposed Distribution once all required conditions have been fulfilled or waived.