PETALING JAYA: Capital A Bhd
's shareholders have approved the proposed disposal of the group’s aviation business to AirAsia X Bhd at its extraordinary general meeting.
In a statement, the group said this move marks a pivotal milestone that will allow them to focus on the four strategic pillars that will drive its transformation into a future-proofed tech-driven aviation service.
Its chief executive officer Tan Sri Tony Fernandes said with the approval to divest the aviation business, the group is now unlocking a bright new future by delineating our pure-play aviation business from aviation support services.
“Separating the aviation and non-aviation businesses allows us to sharpen our focus on maturing the high-growth aviation support services and digital businesses we have built to support the aviation business,” he said.
According to Fernandes, the aviation businesses will be able to consolidate to form a game-changing AirAsia Group, with synergies between short-haul and long-haul operations driving greater efficiency, profitability, and shareholder returns.
“From digital travel to logistics and brand management, we are building a robust, tech-powered aviation services ecosystem. Today’s approval from our shareholders also paves the way for Capital A to move to a clean balance sheet that will provide the clarity and flexibility to finalise our regularisation plan and exit PN17 status soon,” he noted.
Following the approval, Capital A will seek a court order to distribute the consideration shares to shareholders through a planned reduction and repayment of the company’s issued share capital.
It will also be securing approval from the holders of Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS) at their meeting on October 14, 2024 marking another critical milestone in Capital A’s journey.
