Friday 14 Jun 2024
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KUALA LUMPUR (April 15): Capital A Bhd, which is currently under Practice Note 17 (PN17) status, announced that its management "is in the midst of exploring a potential fundraising exercise by its aviation business", but has no intention to undertake a private placement of new Capital A shares.

"The evaluation is still in its preliminary stage, and the board of directors has not been presented with a firm proposal to deliberate on.

"Shareholders are advised not to speculate in the trading of shares in the company," the company told Bursa Malaysia in its response to The Edge's article entitled 'Capital A seeks private placement to raise up to US$400 mil, says source', in the latest edition of the Malaysian weekly.

In its filing with the stock exchange, Capital A informed shareholders that it currently "does not have any intention to undertake a private placement". The company will update shareholders if there are any material developments on the matter, in accordance with the Main Market Listing Requirements of the exchange, it added.

In an interview with The Edge on Feb 26, Capital A chief executive officer Tan Sri Tony Fernandes said the expanded balance sheet of the group's aviation business — AirAsia Group — will be leveraged to raise fresh capital. He told The Edge that there would be new shareholders coming in to inject capital into the group.

Capital A is currently in talks to sell its aviation operation to AirAsia X Bhd. However, negotiations between the two companies are taking longer than planned. Initially set for two months from February, the negotiation period was first extended to April 15, and later extended for a second time to April 30.

Edited ByKathy Fong
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