Fernandes aims to have Capital A’s PN17 status lifted by May, stays silent on a Saudi investment
(From left) AirAsia brand co (Abc) CEO Rudy Khaw, BigPay & AirAsia Rewards CEO Aireen Omar, Capital A Bhd CEO Tony Fernandes, Capital A CFO Teh Mun Hui, AirAsia MOVE CEO Nadia Omer, AirAsia Aviation Group chief commercial officer Amanda Woo, Teleport CEO Pete Chareonwongsak, and head of digital & innovation services ADE Adnan Mansur (representing Mahesh Kumar, CEO of ADE) at the media briefing in conjunction with the low-cost airline group’s PN17 regularisation plan at KLIA, Sepang, Selangor on Monday. (Photo by Shahrill Basri/The Edge)
SEPANG (March 10): Capital A Bhd (KL:CAPITALA), which last Friday (March 7) received Bursa Malaysia’s green light for its regularisation plan, expects to exit its Practice Note (PN17) status by May this year, according to its chief executive officer Tan Sri Tony Fernandes.
“I’m hoping April 30th [to lift the PN17 status] — that’s my birthday — but I don’t think we’ll be quite there, probably a few weeks later,” Fernandes told a media briefing in conjunction with the low-cost airline group’s PN17 regularisation plan.
“So, we think by May, we will, Capital A will be out of PN17 fully right; that is our target,” he said.
Before exiting its financially distressed status, Capital A will first need to issue a circular to shareholders detailing its restructuring plan, scheduled in March 2025.
By April 2025, the group’s shareholders and redeemable convertible unsecured Islamic debt securities (RCUIDS)-holders should vote in favour of the plan during an extraordinary general meeting (EGM), and subsequently, Capital A will secure a High Court approval for its capital reduction exercise by May 2025.
The High Court has fixed March 21, 2025 as the hearing date for the group’s capital reduction and distribution exercise pursuant to the proposed distribution of AirAsia Group Bhd (AAGB) shares, according to Capital A’s exchange filing on Monday.
The exercise entails AAGB, the NewCo, taking over Capital A’s sister company AirAsia X Bhd’s (KL:AAX) listing status. Capital A proposes to inject its AirAsia aviation businesses into AAGB in exchange for RM3 billion worth of AAGB shares, part of which will be distributed to Capital A’s shareholders, and RM3.8 billion in debt novation.
Under the group’s restructuring exercise, AAX — soon to become AAGB — plans to raise RM1 billion via a placement of shares.
Fernandes was tight-lipped on whether the Saudi sovereign wealth fund Public Investment Fund (PIF) will subscribe to the group’s RM1 billion placement, as reported by media, including The Edge.
“Don’t ask me questions on PIF’s placement order book — we’re not going to talk about it, okay, because we can’t,” he said.
PIF reportedly could play the single biggest role in its fundraising exercise.
At the time of writing on Monday, shares of Capital A were traded one sen or 1.22% higher at 83 sen, valuing the group at RM3.60 billion.
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