Malaysia-based Capital A Berhad announced on Thursday that its shareholders had approved a plan to reduce the company’s Capital as part of its effort to exit the PN17 status.
The company said its shareholders and RCUIDS holders agreed on an important decision during the extraordinary general meeting (EGM).
This decision is part of a plan to improve the company’s financial health, which includes reducing its Capital by up to RM6 billion.
This marks an important step in Capital A’s plan to fix its finances and move out of PN17 status. The plan is also meant to strengthen the company financially in the long run.
The capital reduction will help the company clear its balance sheet by reducing its accumulated losses, leading to a stronger and clearer financial position.
“This is an important day for Capital A. With the support of shareholders and RCUIDS holders for the capital reduction, we are making strong moves to turn the company around and move past 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,” said Tony Fernandes, Chief Executive Officer of Capital A.
These steps are part of a bigger plan to transform the company. This includes selling Capital A’s aviation business to AirAsia X Berhad (AAX).
The company is also focusing on six fast-growing businesses outside aviation: Asia Digital Engineering (aircraft maintenance), Teleport (logistics and delivery), AirAsia MOVE (digital travel platform), BigPay (digital finance), Santan (inflight catering), and Abc. International (brand management).
Now that the EGM approvals are in place, Capital A will get the capital reduction confirmation from the High Court. This will happen once the date for the proposed sale is announced.
These steps help Capital A move forward with its plan to improve the company. They are expected to strengthen the company’s finances significantly, boost investor confidence, and support long-term growth, putting the company on track to exit PN17 status by mid-2025.
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