Today, Capital A announced that the Extraordinary General Meeting (EGM) circular detailing the proposed disposal of its aviation business to AirAsia X (AAX) has been cleared by Bursa Malaysia. This key procedural step paves the way for an EGM to be convened in the next three weeks, when shareholders will have the opportunity to approve the proposal. The successful completion of this transaction will lead to the formation of the new AirAsia Group.
Following shareholders’ approval at the upcoming EGM, the aviation disposal proposal will proceed to court for approval of the proposed distribution to shareholders via capital reduction. Capital A has announced its intention to combine both short-haul (AirAsia)and long-haul (AirAsia X) operations under one umbrella, AirAsia Group.
Tony Fernandes, CEO of Capital A said, “We are beyond excited about the next step of the aviation transformation. We are set to redefine the aviation future with the birth of the new AirAsia Group, where AirAsia and Air Asia X operations unite to deliver increased profitability and returns for the shareholders.
He continued, “This transaction is a key part of our long-term strategy to unlock unparalleled value for our shareholders and position Capital A for sustainable growth across all its business verticals. By separating our aviation and non-aviation businesses, we can better focus on building synergies within each entity, driving growth, and maximising shareholder returns. Importantly, this will also allow Capital A to have a clean balance sheet and focus on finalising its regularisation plan to exit Practice Note 17 (PN17) status. We look forward to receiving the support of our shareholders at the upcoming EGM as we embark on this transformative journey.”
