Capital A Berhad has clarified that Bursa Malaysia Securities’ decision not to approve an extension of time to complete its Distribution exercise will have no material impact on the Group’s ongoing corporate plans or overall strategy.
No change to strategy, only timeline adjustment
According to Capital A, the only implication of Bursa Securities’ decision is a slight revision to the completion timeline. The Group confirmed that its broader corporate exercises remain intact and unaffected.
Distribution linked to AirAsia X private placement
The Distribution remains conditional upon the completion of the private placement by AirAsia X Berhad (AAX), as new AAX shares must first be issued before they can be distributed to entitled Capital A shareholders.
Bursa Securities has approved an extension for AAX to complete its private placement by 19 January 2026. Capital A’s revised timeline will therefore align with this updated deadline, after which the new AAX shares will be allotted to shareholders as planned.
Entitlement Date and court application
Capital A explained that the Entitlement Date was announced based on the reasonable expectation that identified investors would meet the required deadlines. At the time, there was no indication that the AAX private placement would not be completed within the original target timeframe of 31 December 2025.
The Entitlement Date was also required to enable Capital A to submit a supplemental application to the High Court under Section 116 of the Companies Act 2016. This application relates to a reduction of the Company’s issued share capital of approximately RM2.7 billion, based on the closing market price of AAX shares on the Entitlement Date.
Next steps
Capital A reiterated that the capital reduction quantum can only be determined once the Entitlement Date is set, making the announcement a necessary procedural step. The Group stated that the date was carefully planned to allow sufficient time to obtain the required court order.
Looking ahead
Despite the revised timeline, Capital A confirmed that its overall corporate direction remains unchanged and that the Distribution will proceed once all regulatory and procedural requirements are fulfilled.
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