KUALA LUMPUR (Dec 31): Capital A Bhd (KL:CAPITALA) has applied for more time to complete its proposed distribution of AirAsia X Bhd (KL:AAX) shares to entitled shareholders.
The group announced in a bourse filing on Wednesday (Dec 31) that the request stems from an expected delay in AAX's private placement exercise.
The share distribution is currently required to be completed by Jan 2, 2026 — a month after its entitlement date on Dec 3. Under the exercise, entitled Capital A shareholders are set to receive 386 AAX shares for every 1,000 Capital A shares held. The distribution is meant to happen concurrently with the issuance of the placement of the AAX shares, Capital A said.
Capital A is now seeking to push the distribution deadline to Jan 19 as its board has "been informed that the implementation of the proposed private placement is expected to be delayed, pending the finalisation of documentation from the identified investors to subscribe for the placement shares”, Capital A said.
The share distribution and private placement are core components of Capital A's regularisation plan. This plan involves AAX acquiring Capital A's aviation business — AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) — for RM6.8 billion to consolidate all short- and medium-haul AirAsia carriers under a single listed entity.
AAX's RM1 billion private placement is intended to fund these enlarged airline operations.
Meanwhile, AAX has also submitted a request for an extension of time to complete the proposed private placement, the AAAGL acquisition and the granting of subscription options. The specific duration of the extension sought was not disclosed.
Extensions were not sought for the AAB acquisition and share capital reduction, as the exercises are not tied to the issuance of securities, AAX noted in a separate bourse filing.
Shares in Capital A ended half a sen or 1.19% lower at 41.5 sen, valuing the group at RM1.81 billion.
AAX shares closed one sen or 0.57% lower at RM1.74, giving the company a market capitalisation of RM777.91 million.