KUALA LUMPUR (Jan 8): Capital A Bhd (KL:CAPITALA) has clarified that Bursa Malaysia’s decision not to approve its request for an extension to complete the implementation of its distribution of AirAsia X Bhd’s (KL:AAX) shares to its shareholders will not materially affect the group’s ongoing corporate exercises.
In a statement published on its website, the company said its overall strategy remains unchanged, with only a slight adjustment to the completion timeline.
It said the share distribution is dependent on the completion of a private placement by AirAsia X Bhd (KL:AAX), as the new AirAsia X shares must be issued before being distributed to Capital A shareholders. Following Bursa’s approval for AirAsia X to extend the private placement deadline to Jan 19, 2026, Capital A’s timeline will be aligned accordingly.
On Jan 6, Capital A announced that Bursa had rejected Capital A’s request for more time to complete the distribution of AirAsia X shares to its shareholders. The regulator however allowed AirAsia X’s request to extend a separate application to complete its proposed private placement, acquisition of AirAsia Aviation Group Ltd, and the granting of subscription options until Jan 19.
Capital A was required to complete the distribution of AAX shares by Jan 2, 2026, a month after its entitlement date of Dec 3, 2025. Capital A sought to push this deadline to Jan 19 after AAX’s RM1 billion private placement faced documentation delays from identified investors.
Capital A also clarified that the announcement of the entitlement date on Dec 3, 2025 was based on the expectation that investors would meet documentation deadlines for the AirAsia X private placement, initially targeted for completion by Dec 31, 2025.
The announcement enabled Capital A to submit a supplemental application to the High Court under Section 116 of the Companies Act 2016 for a reduction of issued share capital of about RM2.7 billion, based on the closing AirAsia X share price of RM1.62 on the entitlement date.
Capital A said the entitlement date was carefully chosen to give Capital A enough time to get the court’s approval.