Capital A Berhad’s proposed capital structure optimisation exercise involving Move Digital Sdn Bhd (MDSB) could pave the way for the group to exit its loss-making BigPay business and reduce its ongoing funding commitments, according to MBSB Investment Bank.
The research house maintained its BUY call on Capital A with an unchanged sum-of-the-parts-derived target price of RM0.53, viewing the proposed exercise positively as a means of monetising legacy investments and addressing outstanding liabilities.
MDSB, a wholly-owned subsidiary of Capital A, holds a 99.56% stake in BigPay and a 13.6% interest in Tune Protect Group Berhad.
Under the proposed court-supervised scheme, MDSB intends to monetise its assets through a potential BigPay disposal, the sale of its Tune Protect stake and the collection of approximately RM32 million in receivables.
The proceeds would be used to settle creditors, against MDSB’s net liabilities of RM292 million as at end-2025.
MBSB said a potential disposal of BigPay would allow Capital A to stop providing further financial support to the loss-making fintech business.
Although BigPay’s profitability is no longer separately disclosed following its inclusion under AirAsia Next’s reporting from the fourth quarter of FY2025, management indicated that the business remained loss-making in the second quarter of FY2026.
Nevertheless, BigPay’s EBITDA losses narrowed 28% year-on-year, while net operating losses declined 22%.
Capital A provided RM31.3 million in advances to BigPay during the first half of FY2026, comprising RM24.1 million in the first quarter and RM7.2 million in the second quarter.
MBSB said an eventual disposal could reduce losses currently consolidated under AirAsia Next while eliminating the need for continued funding support.
The proposed scheme provides MDSB with up to three years to monetise its assets, allowing greater flexibility over the timing of BigPay’s potential disposal and the sale of its Tune Protect shareholding.
MBSB said the extended timeframe could reduce the need for immediate asset sales and allow MDSB to maximise recoveries for creditors.
The exercise would also provide a structured mechanism to address legacy obligations, given that a substantial portion of MDSB’s liabilities is owed to Capital A and other group entities.
The research house made no changes to its earnings forecasts pending further clarity on the timing, disposal consideration and eventual completion of the proposed exercise.
