High court approves Capital A's capital reduction, working towards PN17 status uplift


KUALA LUMPUR: Capital A Bhd has received the High Court of Malaya’s approval on capital reduction of RM5.51 billion, marking the completion of all major steps required under Capital A’s regularisation plan.

In a statement today, the company said the regularisation plan would be completed upon lodgement of the High Court sealed order with the Registrar of Companies by next week.

Capital A’s group chief financial officer, Teh Mun Hui, said the order was the final court step in the company’s PN17 journey.

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"We set out to fix the fundamentals, and we followed through on every step - completing the aviation business disposal, distributing AirAsia X Bhd (AAX) shares to our shareholders, and securing the approvals needed to clean up the balance sheet. We are now working towards the upliftment of PN17 status,” she added.

Today’s High Court approval follows recent end-phase milestones, including the completion of the aviation business disposal, namely AirAsia Bhd and AirAsia Aviation Group Ltd, to AAX on Jan 16, 2026, and the listing and distribution of AAX shares to entitled Capital A shareholders on Jan 19, 2026. 

Capital A said the remaining non-aviation businesses under its control had been consistently profitable over the past four quarters, from the fourth quarter of 2024 (4Q 2024) to 3Q 2025.

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"Upon completion of the regularisation plan, Capital A’s shareholders’ funds will turn positive. With the above, Capital A would have addressed all the PN17 criteria, while the uplift remains subject to regulatory approval,” it added.

Post-regularisation, Capital A will operate as a group focused around five businesses: Asia Digital Engineering (maintenance, repair and operations), Teleport (logistics), AirAsia MOVE (travel platform), AirAsia Next (brand and IP) and Santan (food and beverage). - Bernama

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