KUALA LUMPUR (March 24): Capital A Bhd (KL:CAPITALA) on Monday said the cut-off date to dispose of its short-haul aviation business worth RM6.8 billion to its sister company AirAsia X Bhd (KL:AAX) has been extended for the second time, to May 30.

The original cut-off date of Jan 25 was previously extended to March 25, before this latest two-month extension.

“This is to allow additional time for the company and AAX to, amongst others, obtain the approval and/or consent of the relevant authorities, financiers/lenders and/or third parties as well as for AAX to finalise the definitive terms with the identified investors in relation to AAX’s proposed pre-completion private placement exercise,” Capital A said in an exchange filing.

Shareholders of both Capital A and AAX approved the merger of Capital A’s short-haul airline business into AAX in October last year.

The corporate exercise is intended to help Capital A exit its Practice Note 17 (PN17) status, which it fell into in 2022.

On March 7, Capital A received approval from Bursa Malaysia for its proposed regularisation plan. Following this, Capital A chief executive officer Tan Sri Tony Fernandes was quoted as saying that he expects the group to exit the PN17 status by May.

Capital A shares closed half a sen or 0.63% lower at 79 sen on Monday, valuing the group at RM3.42 billion. AAX closed five sen or 3.18% lower at RM1.52, giving the airline a market capitalisation of RM679.55 million.

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Deadline for AAX takeover of Capital A’s aviation biz extended by two months to March 24