KUALA LUMPUR: Capital A Bhd
will distribute 1.69 billion new shares in AirAsia X Bhd (AAX) to its eligible shareholders via a dividend-in-specie, marking the final stage of its restructuring plan.
In a statement today, the group said the move forms part of the final phase in the disposal of its airline business to AAX, consolidating all AirAsia-branded airlines under a single entity and paving the way for Capital A’s transformation into a multi-platform travel and digital group.
The entitlement date for the distribution is Dec 3, 2025, at 5 pm, with the distribution ratio estimated at approximately 389 AAX shares for every 1,000 Capital A shares held.
"Capital A shareholders whose names appear in the record of depositors at 5 pm on the entitlement date will be entitled to receive the distribution shares and will not be required to pay for them,” it said.
The group added that the actual number of shares to be received will be calculated based on a formula relating to the number of Capital A shares held on the entitlement date.
"Fractional entitlements to the distribution shares will be disregarded,” it said.
Capital A said the exercise represents a major milestone in its comprehensive regularisation plan, which also includes a proposed capital reduction to offset accumulated losses.
"The overall restructuring is targeted for completion by December, after which Capital A plans to apply for an uplift from its Practice Note 17 (PN17) status,” it said.
Its chief financial officer, Mun Hui Teh, said the setting of the entitlement date is a monumental milestone, marking a step closer to the final phase of the airline business disposal that will complete the consolidation of all AirAsia airlines under AirAsia X.
Following the consolidation, the group explained that a unified AirAsia Group will operate as a single airline entity, focusing on expanding its low-cost network across the region and beyond.
"Capital A, in the meantime, will concentrate on scaling its five key high-growth businesses: its engineering arm, Asia Digital Engineering; logistics provider, Teleport; travel platform, AirAsia MOVE; food and beverages brand, Santan; and its brand licensing and intellectual property division, AirAsia Next,” it said.
Capital A fell into Bursa Malaysia's PN17 category of financially distressed entities in January 2022. - Bernama
