Capital A – the owner of the AirAsia Aviation group – has secured approvals from the Malaysian stock exchange for its “regularisation plan” to exit its financially-distressed status.
With the approval, announced 7 March, the Malaysia-based company can now “finalise the implementation” of the plan, which includes a capital reduction and a reorganisation that includes the sale of the AirAsia group to sister operator AirAsia X.
The plan must gain shareholders’ and the court’s approvals before Capital A can exit its ‘Practice Note 17’, or PN17, status for financially-distressed companies.
Local media reports suggest that the exit could come as soon as May, if the company manages to secure the necessary approvals.
Capital A chief Tony Fernandes says: “Our journey has been focused on rebuilding our financial foundation, and with today’s announcement, we take a giant leap toward a future of financial strength and operational excellence.”
The announcement also comes amid rumours that the Saudi sovereign fund could invest $100 million in the AirAsia group following its divestment. According to a Bloomberg report, Capital A is in also discussions with investors in Singapore and Japan, with a possible announcement to be made in the coming weeks.
Capital A has not publicly addressed the matter.
