Capital A said the completion of the regularisation exercise would have addressed all the criteria under PN17, although the uplift remains subject to regulatory approval.
KUALA LUMPUR (Jan 21): Capital A Bhd (KL:CAPITALA) has received approval from the High Court for a capital reduction of RM5.51 billion under the group’s regularisation plan towards lifting its Practice Note 17 status.
In a statement on Wednesday (Jan 21), the group said the regularisation plan will be completed upon lodgement of the High Court’s sealed order with the Registrar of Companies, which is expected to take place next week.
Upon completion of the regularisation exercise, the group expects its shareholders’ funds to turn positive. Capital A said the completion of the regularisation exercise would have addressed all the criteria under PN17, although the uplift remains subject to regulatory approval.
“We are now working towards the upliftment of PN17 status,” said group chief financial officer Teh Mun Hui in the statement.
The group noted that the court approval follows the completion of the disposal of Capital A’s aviation business, namely AirAsia Bhd and AirAsia Aviation Group Ltd to AirAsia X Bhd (KL:AAX) earlier this month. It was then followed by the listing and distribution of AirAsia X shares entitled to Capital A shareholders.
After the completion of the regularisation plan, Capital A said it will focus on its five core non-aviation businesses. These include Asia Digital Engineering Sdn Bhd — which provides maintenance, repair and overhaul services — along with Teleport, AirAsia Move, AirAsia Next and Santan.