KUALA LUMPUR (June 11): Capital A Bhd (KL:CAPITALA) said the Singapore court order to seize shares in its fintech arm BigPay Pte Ltd and logistics unit Teleport Everywhere Pte Ltd (TES) is not expected to result in any losses for the group.
The group stressed that TES and BigPay are not major subsidiaries, as neither contributed more than 70% of Capital A's profit before tax or total assets based on its audited financial statements for the financial year ended Dec 31, 2025.
Capital A owns 76.86% of TES, comprising a direct 65.41% stake and an 11.45% stake held through Move Digital Sdn Bhd. It also owns 99.56% of BigPay through Move Digital.
"No losses are anticipated to result from the notice, given that the US$14.7 million (RM59.8 million) claim has been accounted for in Capital A's financial statements since the financial year ended Dec 31, 2024," the group said in response to a query from Bursa Malaysia.
On Tuesday, Capital A announced that Move Digital had been served with a notice of seizure by the sheriff of the Supreme Court of Singapore covering its 99.56% stake in BigPay and 11.45% stake in TES.
The seizure is intended to enforce a partial arbitration award requiring Move Digital to buy out BigPay co-founders Christopher Davison and Navin Rajagopalan's minority interests in BigPay for US$14.736 million (RM59.9 million).
Davison and Navin initiated arbitration proceedings in 2021 against AirAsia Digital (now known as Move Digital), AirAsia Bhd and BigPay after AirAsia Digital terminated agreements related to its investment in BigPay. They alleged breach of contract and minority shareholder oppression, and sought to compel AirAsia Digital to buy their shares for between US$140 million and US$183 million (RM624 million to RM816 million).
In December 2024, the arbitration tribunal ordered AirAsia Digital to buy out their shares for US$14.74 million.
Capital A said the total cost of its investment as at Dec 31, 2025 stood at RM11.5 million for TES and RM287.3 million for BigPay.
The net book value of TES and BigPay as at the same date stood at negative US$21 million and negative RM502 million respectively.
The group added that the seized shares will remain frozen pending the outcome of an objection to be filed by Move Digital with the Singapore court by June 23, 2026.
Shares of Capital A closed unchanged at 40 sen on Thursday, giving the group a market capitalisation of RM1.79 billion.