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Capital A Berhad submitted its Proposed Regularisation Plan to Bursa Malaysia Securities Berhad on 23rd December.
This move is a pivotal step in Capital A’s journey to exit Practice Note 17 (PN17) status.
Likewise, this milestone represents Capital A’s achievement in strengthening its financial position and reaffirms its commitment to driving long term growth from here onwards.
A momentous step
According to Capital A chief executive Tony Fernandes: “We are beyond thrilled to take this momentous step towards uplifting our PN17 status and paving the way for a brighter future. The regularisation plan, which includes a capital reduction of up to RM6 billion, is designed to strengthen our balance sheet by eliminating the losses incurred during the Covid pandemic, and reflect the true value of our underlying assets in Capital A.”
Fernandes added that not many companies successfully exit PN17, and those that do often take many years to achieve it.
He said: “What makes this milestone even more remarkable is that we have reached it while navigating the unprecedented challenges brought on by Covid. Once the plan is approved, Capital A will follow AirAsia X’s success in exiting PN17 almost a year ago. This will stand as one of the proudest moments of my career: a testament to the resilience and determination of our team.”
Once all approvals are in place, Fernandes is confident that he and his team can successfully execute their strategy to deliver sustainable growth and long-term value, building a stronger and more resilient Capital A.
What happens next?
Following the submission of the plan to Bursa Malaysia for approval, these are the remaining steps committed by the Group to complete:
- Approval from Bursa Malaysia
- An Extraordinary General Meeting: To be convened following Bursa Malaysia’s approval to seek shareholder endorsement.
- Approval from the High Court of Malaya: Upon shareholder approval, the plan will be submitted to the High Court of Malaya for confirmation.
- PN17 Upliftment: Completion of these steps will enable the Group to exit PN17 status, marking the successful conclusion of its financial regularisation efforts.
The proposed PN17 plan is subject to the completion of the disposal of aviation.
Capital A remains committed to regulatory compliance and will focus on mitigating risks, including market competition and operational disruptions.
Its management team is confident in its strategic direction and its ability to execute the regularisation plan effectively, setting the stage for a stronger and more resilient future.
