KUALA LUMPUR: Capital A Bhd
has announced its proposed regularisation plan includes a capital reduction of up to RM6bil to set-off the accumulated losses of the group.
"The exact quantum of share capital to be reduced is dependent on the accumulated losses of the group; and the resultant issued share capital of the company, after the completion of the proposed corporate exercises," it said in a filing with Bursa Malaysia.
In a press statement, the aviation group said it expects to submit the final plan soon, which will facilitate its exit from Pactice Note 17 (PN17) status.
Capital A CEO Tan Sri Tony Fernandes said the group can now focus on growing its four strong companies within Capital A comprising CAPAS (aviation services), Teleport, MOVE digital and branding company.
"These companies will not only support AirAsia but also help shape the future of the Asian aviation and travel industry," he added.
Meanwhile, Fernandes said the group has decided to scrap the US$1.15bil special purpose acquisition company (SPAC) deal to list AirAsia's aviation brand manager on the Nasdaq.
He said the decision was made after Aetherium Acqusition Corp received a Delisting Determination from the Nasdaq in June 2024.
He said the group's termination of the business combination agreement (BCA) between Aetherium and Capital A International was a strategic decision given the group's focus on the regularisation plan.
"Nevertheless, once the regularisation plan is completely executed, Capital A will revisit the idea of listing its four core businesses, starting with the branding company in the US stock market," he added.
