PETALING JAYA: Capital A Bhd
has submitted its proposed regularisation plan to Bursa Malaysia to exit its Practice Note 17 (PN17) status.
In a statement, the group said the move represented Capital A’s achievement in strengthening its financial position and reaffirming its commitment to driving long-term growth.
Capital A chief executive officer Tan Sri Tony Fernandes said exiting the PN17 status would be a “long time coming” for the company. “We are beyond thrilled to take this momentous step towards uplifting our PN17 status and paving the way for a brighter future.
“The regularisation plan, which includes a capital reduction of up to RM6bil, is designed to strengthen our balance sheet by eliminating the losses incurred during the Covid pandemic and reflect the true value of our underlying assets in Capital A.”
Fernandes noted that not many companies had successfully exited PN17, adding that those that did, often took many years to achieve it.
“What makes this milestone even more remarkable is that we have reached it while navigating the unprecedented challenges brought on by Covid.
“Once the plan is approved, Capital A will follow AirAsia X’s success in exiting PN17 almost a year ago. This will stand as one of the proudest moments of my career – a testament to the resilience and determination of our team.”
With all approvals in place, Fernandes said he is confident in executing the group’s strategy to deliver sustainable growth and long-term value, building a stronger and more resilient Capital A.
Following the submission of the plan to Bursa Malaysia for approval, Capital A would need to get an approval from the stock market operator.
It added that an EGM would also need to be convened following Bursa Malaysia’s approval to seek shareholder endorsement. Capital A said it would also need to obtain approval from the Malaysian High Court of.
“Upon shareholder approval, the plan will be submitted to the High Court for confirmation. Completion of these steps will enable the group to exit the PN17 status, marking the successful conclusion of its financial regularisation efforts.”
Capital A said the proposed PN17 plan is subject to the completion of the disposal of the aviation business, worth some RM6.8bil, to AirAsia X Bhd.
“Capital A remains committed to regulatory compliance and will focus on mitigating risks, including market competition and operational disruptions. The group is confident in its strategic direction and its ability to execute the regularisation plan effectively, setting the stage for a stronger and more resilient future.”
