KUALA LUMPUR: Capital A Bhd
clarified that Bursa Securities’ decision not to approve its application for an extension of time to complete the distribution will have no material impact on the group’s ongoing corporate exercises.
“There is no change to the group’s strategy. The only impact is a slight revision to the completion timeline,” Capital A said in a statement.
The distribution remains conditional on the completion of AirAsia X Bhd’s (AAX) private placement, as the new AAX shares must be issued before they can be distributed to entitled Capital A shareholders.
Following the approval granted by Bursa Securities to AAX for an extension to complete its private placement by Jan 19, 2026, Capital A’s timeline will align accordingly. Upon issuance, the new AAX shares will be allotted to Capital A shareholders as planned.
“For the avoidance of doubt, Capital A had proceeded to announce the entitlement date on the premise that there was sufficient time for the identified investors to provide the necessary documentation.
“At the time of the announcement of the entitlement date, there was no indication suggesting that the identified investors would be unable to meet the deadlines set by AAX and it was reasonable to expect that the AAX Private Placement would be completed within the approved timeframe, i.e. by Dec 31, 2025, in line with AAX’s target completion date,” Capital A said.
Additionally, the announcement of the entitlement date was a necessary step to allow Capital A to submit a supplemental application to the High Court for an ancillary order pursuant to Section 116 of the Companies Act 2016.
The application relates to a reduction of the company’s issued share capital of approximately RM2.7bil pursuant to the distribution, based on the closing market price of AAX shares of RM1.62 on the entitlement date, as set out in the Supplemental Court Order.
By way of background, the quantum of the capital reduction can only be determined by reference to the closing market price of AAX shares on the entitlement date.
As such, the application for the Supplemental Court Order could not be made until the entitlement date has been announced.
In this regard, Capital A said the entitlement date on Dec 3, 2025 was carefully planned to provide sufficient buffer for Capital A to obtain the Supplemental Court Order.
