Malayan High Court confirms Capital A share reduction

Capital A Berhad reached another milestone on Friday, 21st March, as the High Court of Malaya confirmed its issued share capital reduction and repayment under Section 116 of the Companies Act 2016 as part of the Proposed Distribution.

The exact amount of the issued share capital reduction required to facilitate the Proposed Distribution will be determined based on the prevailing market price of AirAsia X (AAX) shares at the time of Capital A’s application to the High Court after the Entitlement Date.

Capital chief executiveTony Fernandes said: “This is another significant step forward in our transformation journey. The confirmation from the High Court provides us with the clarity we need to move ahead with the Proposed Distribution and other key initiatives. We are fully committed to ensuring a seamless transition for all stakeholders as we continue to reshape Capital A into a leaner, more focused travel and digital business. We appreciate the patience and support from our shareholders, partners and regulators as we work through this process.”

While this confirmation represents a significant step forward, the Proposals, which include the Proposed AAAGL Disposal, Proposed AAB Disposal, and Proposed Distribution, remain subject to the fulfillment and/or waiver of certain conditions precedent under the Share Sale and Purchase Agreements (SSPAs). 

The Entitlement Date for the Proposed Distribution will be determined and announced by the Company once all conditions precedent have been satisfied and / or waived.